Australia’s Home Office claimed that the country doesn’t have the technical capabilities to implement a system compliant with the proposed travel rules for cryptocurrencies. During a Senate appearance in Australia, the department concluded that this was possible. The Australian Department stated that the system would be a game changer in the fight against crypto-related crimes if it was implemented.
Australian Department believes technology for implementing crypto travel rule is still missing
Last Friday, the Australian Home Office RecognizedIt lacked the technical capabilities necessary to implement a travel system for crypto transactions. During a session of the Australian Senate, Daniel Mossop – Deputy Secretary to the Australian Home Office – made these remarks. Mossop spoke:
“I think it all depends on how.” [the travel rule]It is being implemented, so a technological option that eliminates a lot of paperwork would make a big difference. [But]We are not yet at the point where there is a technological solution.
Bradley Brown, the Australian Transaction Reports and Analysis Center’s country director, also shared the same views on the subject. He said that the technology needed to implement the travel law in the country would be crucial.
FATF Crypto Travel Rule
The Financial Action Task Force has recommended the implementation a travel policy for cryptocurrency transactions. It was recommended by the FATF on June 1, 2019. This travel rule would require that a global system for The information exchange be integrated into the portfolios as well as the virtual asset service. Providers such as portfolio operators and exchanges. This has been difficult to do due to the pseudonymous nature of most cryptocurrencies.
The travel rule is not fully followed by most countries. According to a ReportFATF published this report on June 25, but most countries have not been in a position to implement it. The report states that:
The majority of jurisdictions have not yet implemented the requirements of the FATF, including the “travel rule”. This discourages further investment in the necessary technological solutions and compliance infrastructure… We do not yet have global guarantees to prevent the misuse of VASPs for money laundering or terrorist financing.
Some exchanges claim that their systems automatically comply with the travel rules. Binance, for example, announced on July 2 that it had established Traveler, a system developed by Ciphertrace – one of the most important crypto intelligence companies. According to software provider Ciphertrace, Traveler would manage Binance’s compliance with travel rules.
What do YOU think of the FATF travel rules applied to crypto? Comment below.
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