The United Nations body has called on all member states to implement the Travel Rule “without delay” to close “loopholes” not currently protected by regulation. Here are the most important things you need to know about this call to action:
1. The Travel Rule is a regulation that requires virtual asset service providers (VASPs) to collect and share customer information when conducting transactions over a certain threshold. This is meant to prevent money laundering and terrorist financing.
2. The United Nations body is concerned that some member states have not yet implemented the Travel Rule, leaving gaps in the global regulatory framework. They are urging all member states to take action and implement the rule as soon as possible.
3. The Travel Rule is an important step towards creating a more secure and transparent global financial system. By requiring VASPs to collect and share customer information, it helps prevent illicit activities and protects consumers.
In summary, the United Nations body’s call to implement the Travel Rule “without delay” highlights the importance of creating a strong regulatory framework for virtual assets. By closing loopholes and ensuring that all member states are on board, we can create a more secure and transparent financial system for everyone.