Last month, the Financial Action Task Force (FATF) published a report detailing its objectives and key findings on the status of implementation of Recommendation 15 by FATF Members and Jurisdictions.
The report revealed that almos 70% of its member jurisdictions globally had implemented the FATF Travel Rule.
In North America, the USA and Canada are among those that have fully embraced the Travel Rule, putting in place the needed systems and checks, such as active registration of VASPs, supervisory inspections, and enforcement actions. Mexico is still on the path to full implementation, highlighting the varied progress within the same region.
Europe shows a similarly varied picture, but with many countries demonstrating strong adherence to the FATF recommendations. Nations like Austria, France, and Germany have successfully integrated the rule into their systems, whereas others are still adjusting and refining their approaches to meet the requirements.
Asia shows a vibrant mix of Crypto Travel Rule adoption levels, with countries like Singapore and Japan having taken significant steps towards compliance, including the enactment of necessary legislation and the licensing of VASPs. Meanwhile, other countries like Indonesia and Malaysia are making progress but are not yet fully compliant.
In Latin America, Argentina, Brazil, and Colombia are working towards aligning their regulations with the Travel Rule, with varying degrees of progress. The picture is similar in the Middle East and Africa, where the UAE demonstrates strong progress, whereas countries like Egypt and South Africa are grappling with the challenges of regulatory adaptation and enforcement.
This is not the first time that the FATF has issued such a report. Mid-last year, a FATF report noted that only a few countries have fully implemented the Travel Rule, highlighting the urgency of implementing it. It also shed light on the challenges countries and Virtual Asset Service Providers (VASPs) face in complying with the Travel Rule.
The 2023 FATF report not only urged countries to implement the Travel Rule but also pointed out that many existing Travel Rule solutions were not fully capturing and sharing data quickly enough and often failed to cover all types of digital assets. Additionally, these solutions lacked interoperability, making it harder and more costly for VASPs to comply with the Travel Rule.
In this evolving regulatory landscape, Shyft Veriscope's innovative approach aligns with the FATF's guidelines and offers a robust solution where others may fall short. Furthermore, the recently released User Signing enables VASPs to request cryptographic proof directly from users' non-custodial wallets, fortifying the self-custody process and enabling seamless Travel Rule compliance for withdrawal transactions.
___________________________________
Veriscope, the compliance infrastructure on Shyft Network, empowers Virtual Asset Service Providers (VASPs) with the only frictionless solution for complying with the FATF Travel Rule. Enhanced by User Signing, it enables VASPs to directly request cryptographic proof from users’ non-custodial wallets, streamlining the compliance process.
For more information, visit our website and contact our team for a discussion. To keep up-to-date on all things crypto regulations, sign up for our newsletter and follow us on X (Formerly Twitter), LinkedIn, Telegram, and Medium.
