Since 10 January 2020, "crypto asset businesses" have had to be registered with the Financial Conduct Authority (FCA) in order to operate.
Scope of the Travel Rule
The requirements to conform with the Travel Rule will apply to virtual asset exchange providers and custodian wallet providers, as defined in The Money Laundering and Terrorist Financing (Amendment) Regulations 2019, which carry out business in the UK. Unhosted wallet providers are not in scope. Information should be collected using a risk-based approach (RBA) when there is a higher risk of ML/TF. Information does not have to be verified.
EUR 1000 (Only applicable to cryptocurrency, not FIAT)
Information to be exchanged
|Information on the originator||Information on the beneficiary|
|Transfers above de minimis threshold||Name, Address, Account number or unique transaction identifier, Personal document number, Customer identification number or, date and place of birth||Name, Account number/unique transaction identifier|
|Transfers below de minimis threshold||Name, Account number/unique transaction identifier||Name, Account number/unique transaction identifier|
|If all virtual asset service providers involved in the transaction are UK-based||Account number/unique transaction identifier (subject to requirement to provide full information to beneficiary virtual asset service provider on request)||Name, Account number/unique transaction identifier|
When do you need to comply?
12 months after the amendments to the MLRs enter into force - approximately September 2023.
What else do you need to know?
It is not permitted to sell, market or distribute derivatives and exchange-traded notes (ETNs) that reference unregulated transferable virtual assets to retail consumers.
"Crypto asset exchange providers and custodian wallet providers", as defined in Article 14A of the MLR in the UK, have to comply with the amended Money Laundering, Terrorist Financing Regulations 2017 (MLRs) and register with the FCA.