The crypto sphere has reportedly expressed willingness in their attitude regarding compliance with the Financial Action Task Force’s (FATF) “Travel Rule”, and collaborating with regulators for process expedition.

Specifically, per insights suggested by a Notabene survey, a crypto compliance company from New York, a majority of the crypto sphere will be complying with the Travel Rule by the second quarter of this year. 

At the moment, the report reportedly stated that approximately 70% of respondents are either practicing the rule or having plans down their pipelines to finalize their compliance in Q1/Q2 2022.

The arrival of cryptocurrencies has reportedly brought along a new issue in the attempts to fight against money laundering and terrorism financing. 

Since 2014, FATF has reportedly been keeping a close watch on this area, in a bid to come up with norms for dealing with new dangers. Since then, the FATF has been making adjustments and clarifications to its positions on Anti-Money Laundering requirements for the crypto space, to keep up with its rapid growth.

The FATF’s Recommendation 16 regarding wire transfers – alternatively referred to as “the Travel Rule” – reportedly claimed that virtual asset service providers (VASPs), financial institutions and different regulated entities in member nations are obligated to give originator and beneficiary details to counterparts in transactions of $1,000 or over.

There are a total of 56 businesses throughout the globe entered the survey, 45% of which are based in the Asia Pacific base, 30% from Europe, the Middle East and Africa, and 25% in North America.

Thirteen percent of businesses answered reportedly possessed a banking license or functioning as a bank, while 86% are crypto-native companies.

Per the survey, approximately one-third of firms (31%) entirely or partially abide by the regulation. 92% of respondents have internal compliance and legal departments, and 78% of said entities classify these teams having the ability to make sure the firm operates in accordance with external rules and internal controls.