The Ultimate Global Snapshot of Travel Rule Implementation
As crypto use becomes more mainstream and the ecosystem evolves, regulatory measures like the FATF Travel Rule become increasingly relevant for Virtual Asset Service Providers (VASPs).
Below, we highlight the importance of the Travel Rule for the crypto sector and provide a breakdown of its implementation status across the globe. The breakdown includes countries that have established Travel Rule regulations and those that are in the process of adopting them, followed by a list of countries that have banned crypto.
Why Is the Travel Rule Important?
While beneficial for personal security, crypto’s level of privacy can attract nefarious actors. In 2019, the FATF recommended that its Travel Rule apply to VASPs aiming to foster trust within the crypto ecosystem and assist VASPs and financial institutions in curbing criminal and terrorist misuse of virtual assets.
Per the FATF, the Travel Rule must be applied if a transaction involves
a traditional wire transfer,
a virtual asset transfer between a VASP and another obliged entity, or
a virtual asset transfer between a VASP and a self-hosted wallet.
Countries implementing the Travel Rule strengthen their defences against financial crime. Moreover, when implemented, the Travel Rule aids in the tracing of funds, facilitates financial intelligence units' scrutinising suspicious or unusual activities, and assists law enforcement agencies in the detection, investigation, and prosecution of criminals.
Source: The FATF Recommendations
Travel Rule Breakdowns
Jurisdictions Where Travel Rule Regulations Are in Place
Travel Rule regulations are in place in the following jurisdictions; regions that fall under the TFR* have been included in the list.
Albania
Austria*
Bahamas
Bahrain
Belgium*
Bermuda
Bulgaria
British Virgin Islands
Canada
Cayman Islands
Croatia*
Cyprus
Czech Republic*
Denmark*
Estonia*
Finland*
France*
Germany*
Gibraltar
Greece*
Hong Kong SAR
Hungary*
India
Indonesia
Israel
Ireland*
Italy*
Japan
Latvia*
Liechtenstein
Lithuania*
Luxembourg*
Malaysia
Malta*
Mauritius
The Netherlands*
Norway
Philippines
Poland*
Portugal*
Romania*
Singapore
Serbia
Slovakia*
Slovenia*
South Korea
Spain*
Sweden*
Switzerland
Taiwan
United Arab Emirates (Dubai)
United States
United Kingdom
Venezuela
Jurisdictions Where the Travel Rule Is in Process
The jurisdictions listed below do not yet have the Travel Rule in place. Either the Travel Rule is in the process of implementation, or Travel Rule regulatory discussions are in progress.
Argentina
Australia
Brazil
Columbia
Isle of Man
Kazakhstan
Mexico
New Zealand
Qatar
Seychelles
South Africa
Thailand
Turkey
Read: Global Implementation Status of the FATF’s Travel Rule
Jurisdictions Where Cryptocurrency Is Banned
The below jurisdictions have completely banned cryptocurrency and, therefore do not have the Travel Rule in place.
Algeria
Bangladesh
Bolivia
China
Egypt
Morocco
Nepal
Pakistan
Saudi Arabia
Tunisia
Read: Crypto Regulations: Do We Need Them?
In parting, the Travel Rule is essential for AML/CFT measures, ensuring that cryptocurrencies can be used safely and securely without providing an avenue for illicit activities.
Ensure global Travel Rule compliance; learn more about 21 Analytics’ Travel Rule solution.
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