What is Travel Rule?

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Accepted Answer

The **Travel Rule** is an anti-money laundering (AML) and counter-terrorist financing (CTF) regulation, originally established by the Financial Action Task Force (FATF) under Recommendation 16, which mandates that financial institutions and Virtual Asset Service Providers (VASPs) must obtain, hold, and transmit specific originator and beneficiary information for transactions exceeding a set threshold, typically $1,000 USD or €1,000 EUR.

Travel Rule

What is Travel Rule?

What are the core requirements of the FATF Travel Rule for Virtual Asset Service Providers (VASPs)?

How does the Travel Rule enhance Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) efforts in the crypto sector?

What are the primary technical and regulatory challenges faced by VASPs in implementing the Travel Rule?

What is the Travel Rule's impact on decentralized finance (DeFi) and unhosted wallets?

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