News View Non-AMP

UK Regulators Enforce ‘Travel Rule’ For Crypto, Requiring Firms To Unmask Transaction Parties

Published by
Shayan Chowdhury

According to a recent press release, UK regulators have taken a solid step towards ensuring transparency and accountability in the country’s crypto market. The UK has finally implemented the ‘Travel Rule’ in crypto, mandating crypto firms to reveal transaction parties, ensuring that both senders and recipients are no longer shrouded in anonymity.

‘Travel Rule’ Is Set To Take Place From 1 September

Starting 1 September 2023, UK-based crypto asset businesses will be mandated to gather, verify, and provide information related to crypto asset transfers under the ‘Travel Rule.’ This move comes after the Financial Action Task Force (FATF) urged global jurisdictions to adopt the Travel Rule quickly, aiming to standardize crypto transaction practices with other financial sectors.

In June 2023, the FATF pointed out problems because different countries were taking different amounts of time to start using the Travel Rule. So, the UK worked with businesses to give clear instructions on how to follow this rule, setting an example for other countries.

Firms in the UK are expected to strictly follow the Travel Rule, be responsible for its compliance, and keep track of its adoption worldwide. When dealing with countries not using the Travel Rule, UK crypto companies should check if they can get the needed information, gather and save this data as per rules, and assess the risk before making crypto assets available.

The ‘Travel Rule’ is the UK regulators’ strategic move to combat illegal activities. By ensuring that every transaction can be traced back to its origin and destination, the rule makes it exponentially challenging for malefactors to exploit the system or even launder money. 

New Crypto Rules Permit Transfers To Non-Compliant Nations

The UK’s Financial Conduct Authority (FCA) stated on Thursday that the new crypto anti-money laundering regulations wouldn’t entirely halt transfers to nations not adhering to global standards.

The UK’s strict regulations, including advertising rules, have already impacted crypto operations for firms like PayPal, even though global money-laundering measures aren’t fully in place yet.

While the government aims to position the U.K. as a crypto center, tighter regulations, especially in crypto advertising, and challenges that about 86% of companies can’t overcome, have made many in the industry bearish on achieving this goal.

The Financial Action Task Force (FATF) established the travel rule to prevent the use of crypto for hiding illegal funds. This regulation has already been adopted in regions like the European Union.

DeFi platforms and decentralized exchanges currently fall outside these regulations, allowing users to maintain anonymity. The FCA has not yet clarified how these platforms will be treated under the new rules. This leaves a potential loophole, as users could turn to decentralized P2P exchanges to bypass these regulations when selling crypto assets.

Shayan Chowdhury

Shayan is a digital nomad and a professional journalist. He delivers high-quality engaging articles to Coinpedia through his in-depth research and analysis.

Recent Posts

CoinDCX Hack: Is Lazarus Group Behind The $44M Crypto Attack?

India’s two largest crypto exchanges, WazirX in 2024 and now CoinDCX in 2025, have both…

July 22, 2025

Federal Housing Director Signals Possible Powell Resignation Coming Soon

The U.S. financial world is buzzing after Bill Pulte, director of the Federal Housing Finance…

July 22, 2025

R0AR Recovers and Thrives: Swift Action, Community Support and a Strong Future

R0AR, the Web3 ecosystem powering the $1R0R token, has rebounded from a recent security incident…

July 22, 2025

Will XRP Price Hit Double Digits in 2025? XRP/BTC Rally Is Just the Beginning

In the last 30 days, XRP price has surged an impressive 67.2%, outperforming almost every…

July 22, 2025

Perplexity Predicts Pi Network Price for this Week

Pi Coin is making waves today, rising 7.7% to trade at $0.4866 following a technically…

July 22, 2025

Elon Musk’s SpaceX Just Moved $152 Million in Bitcoin, Are Whales Dumping?

SpaceX has just made a major on-chain Bitcoin move for the first time in 3…

July 22, 2025