Article: The Travel Rule and its Impact on Cryptocurrency: A Simple Explanation of differences between FATF and the Swiss approach published by FINMA
Authors: Dr. Katharina Lasota Heller & Allison Fromm
The Travel Rule, designed to monitor suspicious transactions, obliges financial institutions to share information about a transaction originator and beneficiary. How does it impact cryptocurrencies in Switzerland? Back in 2019, Swiss FINMA following the FATF decided to take a “technology-neutral” approach and applied AML regulations to VASPs, generally allowing transactions only between countries with AML in place without exceptions accepted by FATF.