Cryptocurrency Travel Rule begins, how KYC can help

The new Travel Rule guidance recommends Virtual Asset Service Providers (VASPs), including exchanges, banks, hosted wallets, and other financial institutions, to share certain identifying information about the recipient and receiver for cryptocurrency transactions over USD/EUR 1,000 globally. The Travel Rule is an asset-tracking regulation recommended by Financial Action Task Force (FATF), the global anti-money laundering agency.

Similar regulation has long become a standard in the conventional finance sector through the SWIFT payment system. Korea's cryptocurrency sector is now the first in the world to implement the procedure. The rule requires crypto providers transmitting virtual assets to pass on customer information to the financial institution that is receiving the fund. This requirement applies to transactions exceeding USD 1,000.

The purpose of the Travel Rule is to share information on virtual assets’ transactions. With the shared information, terrorist financing and suspicious activities can be detected. Also, money laundering can be prevented.

ARGOS KYC provides an easy and convenient identity verification solution. Simple KYC service that only requires two steps, taking a picture of the ID and taking a selfie. The processing time is also very short as ARGOS KYC uses AI technology. A free demo version is available on request. Contact our team for the chance to experience the simple and hassle-free KYC solution.