The Financial Action Task Force’s (FATF) travel rule requires VASPs, including cryptocurrency exchanges, custody providers and brokers to collect and share transactional information. The FATF Travel Rule is forcing the crypto industry globally to improve their regulatory compliance. But many crypto companies are struggling to implement the travel rule requirements.
LCX Leading by Example
LCX is a regulated Virtual Asset Service Provider (VASP) and has been preparing for the implementation of the travel rule requirements early on and it is a key part of our LCX Crypto Compliance Suite now.
The Liechtenstein Government has approved an update to the Due Diligence Laws (SPV / SPG) including the implementation of the travel rule last year. The new due diligence requirements including the travel rule will come into force next week on June 1st 2021. Liechtenstein blockchain regulation and implementation on industry level are leading the way when it comes to compliance with the Financial Action Task Force (FATF) travel rule.
LCX is proud to be one of the first crypto exchange platforms to implement the travel rule within our Crypto Compliance Suite. We are leading by example to become a new category leader in the crypto industry.
Financial intermediaries and Virtual Asset Service Provider (VASP), such as LCX, must be able to guarantee at all times that they comply with the Liechtenstein legal basis, the regulations of the European supervisory authorities and the anti-money laundering rules. LCX is is strengthening its compliance system with a seamless integration of the complex FATF travel rule requirements.
The FATF travel rule for digital asset companies follows the requirements already in place for bank transactions and money transmitters in jurisdictions like the United States. In the US money transmitters are required to record identifying information on all parties involved in fiat transfers made between financial institutions.
Image: Picture of the Liechtenstein Parliament building by night and the Vaduz castle in the background on the mountain.
