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 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 , 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.”
