New York-based law firm Notabene claims that 50% of companies in the world believe that it is difficult to comply with the rules of international transactions in the face of legislative uncertainty and the immaturity of the crypto industry.
Notabene, a company specializing in cryptocurrency regulation laws, posted a report stating: 70% of respondents either comply or plan to comply with the rules for international cryptocurrency transactions. The rules are expected to be developed by the International Financial Action Task Force (FATF) in the first or second quarter of 2022.
We are talking about recommendation No. 16 for conducting international cryptocurrency transactions, known as the Crypto Travel Rule. The recommendation requires virtual asset service providers (VASPs), financial institutions, and other regulated entities to provide counterparty information about the sender and recipient of transactions of $1,000 or more.
The survey involved 56 companies from around the world. 45% of them are based in Asia Pacific, 30% in Europe, the Middle East and Africa, and 25% in North America. 13% of respondents have a banking license or are a bank; 86% are crypto companies.
According to the survey, about a third of firms (31%) are fully or partially compliant with the rules. 92% of respondents have legal departments and internal departments responsible for compliance. 78% of companies believe that such divisions can guarantee that the company operates in accordance with external rules and internal controls.
On the other hand, 50% of respondents note that barriers to complying with the Crypto Travel Rule include the immaturity of the crypto industry and legal uncertainty regarding the most important aspects of the crypto industry. However, the report states that the majority of respondents (46%) do not know which protocol to use to comply with the Crypto Travel Rule.
The FATF has been actively involved in the regulation of cryptocurrencies in those aspects related to money laundering and terrorist financing for several years now. Last year, the group published a new version of the cryptocurrency industry regulation guide. In August 2021, the FATF released a report on how far-right groups are funded, including a section on cryptocurrencies. In 2020, FATF executive secretary and G20 representative David Lewis reported that not all crypto firms comply with AML rules.
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