BitMEX Joins VerifyVASP as Crypto Travel Rule Deadline Is Looming

BitMEX announced it is joining VerifyVASP. BitMEX is joining FTX, Beeblock and Bitcmon that are members of the alliance.

VerifyVASP is a Travel Rule protocol, launched by Updit cryptocurrency exchange. The messaging protocol is used for transmitting sensitive data such as personal data.

The protocols are used to meet the requirements of the Financial Action Task Force (FATF) travel rule. From 25 March 2022, South Korea will require all cryptocurrency exchanges to enforce the travel rule for transactions over 1 million Korean won (approximately $811).

The travel rule is for combating money laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term and financing terrorism by collecting customer data for transactions over a certain amount. The data must be made available to law enforcement upon request.

Crypto Travel Rule

The Financial Crimes Enforcement Network (FinCEN) proposed a $3,000 threshold for the travel rule as opposed to FATF, which set the threshold at $1,000. It is possible the United States will set a significantly lower threshold of $250.

Additionally, a Belgian parliament member, Assita Kanko and Spanish member, Ernest Urtasun proposed to enforce the travel rule on every single crypto transaction.

source: europarl

As the EU is concerned with Russia evading sanctions via cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, the regulations procedure is gathering pace. An executive order from the US President on cryptocurrencies is also widely expected.

The CEO of BitMEX, Alexander Höptner said, “At BitMEX, we see compliance as of utmost importance, and we are fully committed to adhering to relevant regulations worldwide. Joining VerifyVASP is an essential step for us to maintain compliance through a progressive and secure solution embraced by many others in the space.”

The CEO of VerifyVASP, Alex Kim said, “Every member brings value to the VerifyVASP Alliance. BitMEX is one of the leading crypto exchanges in the world, and we believe their membership will serve to develop a stronger Travel Rule solution for our member VASPs.”