Watch: unpacking the travel rule for virtual asset service providers (VASPs)
Watch Sam Davison and Thomas Shaw, our VASP Supervision senior manager and Innovation Hub senior advisor, discuss our recently published ‘travel rule guidance note’, answering your frequently asked questions.
Topics include:
- what a VASP is
- what is in scope
- what due diligence VASPs must collect on transfers
- how to demonstrate reasonable steps to complying with the travel rule
- how to deal with jurisdictions that are not yet compliant with the travel rule.
Read the travel rule guidance note
Background
On the 1 September 2023, Jersey brought in legislation to extend the existing Wire Transfer Regulations to apply to VASPs. Its aim, to bring virtual asset transaction regulation in line with traditional finance and align it with the Financial Action Task Force (FATF)’s Recommendation 15 which requires VASPs to collect specific due diligence on virtual asset transfers. This requirement for VASPs is known as the travel rule.
We recognise the challenges that VASPs may face when implementing the travel rule. Our guidance note aims to provide clarity on the expectations of VASPs under different circumstances, and how VASPs can demonstrate they are taking reasonable measures to comply.