Sumsub introduces Travel Rule solution for crypto businesses

All-in-one verification platform helps crypto businesses solve compliance issues and comply with expanding FATF regulations

MIAMI, March 2, 2023 /PRNewswire/ — Sumsub, a global technology company providing customized solutions for KYC, KYB, AML and transaction monitoring, has launched a Solution for travel rule for the crypto industry, offering a complete compliance toolkit throughout the customer lifecycle. This includes secure travel rule information transfers between virtual asset service providers (VASP), all necessary KYC checks, AML screening and verification orchestration according to regulatory specifications and business needs.

Adoption of travel rules is being expanded globally to combat money laundering

Designed to combat money laundering and terrorist financing, the travel rule extends FATF Recommendation 16 on bank transfers to virtual assets such as cryptocurrencies and to VASPs, requiring senders and recipients of all transfers to exchange identifying information, guarantee its accuracy and communicate the data to the government on necessary. In the wake of FTX’s demise and general turbulence across crypto exchanges, governments are moving to tighten regulations.

According to the FATF, 29 out of 98 countries have already adopted laws on travel regulations. In Hong Kong, the travel rule will affect business in June. In the UK Money Laundering Act, Regulation 5 on the transfer of crypto-assets comes into force in September. The EU is rolling out its comprehensive regulation of Markets in Crypto Assets (MiCA), to be enforced in 2024. In Middle East, Dubai have already put forward new crypto regulations. And recently, Japan announced that crypto transactions would be subject to the travel rule of May 2023.

Supports compliance for the crypto industry

Preparation for compliance is essential. Consequences of breaking the rules are fines, damage to reputation and revocation of licence. For example, in August, New York’s financial regulator fined Robinhood Crypto 30 million dollars for significant failures in AML compliance, transaction monitoring and cyber security.

The story continues

Working with over 500 crypto clients since 2015, Sumsub has the expertise and experience to support compliance infrastructure for the crypto community. Sumsub’s Travel Rule solution detects VASP-to-VASP payments, defines receiving VASP, identifies account type and checks for sanctions violations, PEPs and unwanted media. As a result, Sumsub enables crypto platforms to securely exchange and store customer information (including names, wallet addresses, etc.), ensuring that such data is not shared with third parties.

The Travel Rule solution can be easily combined with Sumsub’s advanced Transaction monitoring (KYT) solution. KYT, or know-your-transaction, is a flexible set of procedures that typically include analyzing sender/receiver profiles, calculating risk scores, and cross-checking KYC and transaction data. Sumsub’s crypto customers can control the risk management process by setting rules to automate transactions with counterparties based on internal risk criteria. As a result, they can perform risk analysis based on up-to-date information and easily generate reports if needed.

“With the Travel Rule solution Sumsub offers, crypto companies can enjoy high pass rates, stay ahead of regulatory changes and be fully prepared for new compliance standards. The crypto compliance toolkit from Sumsub allows industry players to confidently develop and expand globally. Our primary focus is to creating a trusted ecosystem for the crypto community that ensures compliance with legal requirements and protects both businesses and individuals from fraud and money laundering along the way. Introducing the Travel Rule solution is an important step towards this ambitious goal.” explains Vyacheslav Zholudev, co-founder and CTO at Sumsub.

For more information, please go to https://sumsub.com/travel-rule.

About Sum sub
Sumsub is an all-in-one verification platform that secures every step of the user lifecycle with customizable KYC, KYB, AML and transaction monitoring solutions.

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SOURCE Sumsub