“There is not good evidence that unhosted wallets present a disproportionate risk of being used in illicit finance,” said the Treasury update.
The government of the United Kingdom said it intends to modify a proposal that would have required crypto firms to collect personal data from individuals holding unhosted wallets that were the recipients of digital asset transfers.
Stay in the know on crypto by frequently visiting Crypto News Today
In its Amendments to the Money Laundering, Terrorist Financing and Transfer of Funds updated on Wene, HM Treasury said it will be scaling back its requirements for gathering data from both the senders and recipients of crypto sent to unhosted wallets, unless the transaction poses “an elevated risk of illicit finance.” The U.K. government added that unhosted wallets could be used for a variety of legitimate purposes, including asan additional layer of protection as is sometimes the case for cold wallets.
“There is not good evidence that unhosted wallets present a disproportionate risk of being used in illicit finance,” said the HM Treasury report. “Nevertheless, the government is conscious that completely exempting unhosted wallets from the Travel Rule could create an incentive for criminals to use them to evade controls.”
The U.K. government made the change in response to a consultation held between July and October 2021 with “[Anti-Money Laundering] (AML)/[Counter-Terrorism Financing] (CTF) supervisors, industry, civil society, academia and several government departments,” in which many expressed concerns about the “breadth of personal information collected” around transfers to unhosted wallets as well as the time required to enact such policy. According to the Treasury Department, the amendments will have a one-year grace period, taking effect in September 2023 if approved by Parliament.
HM Treasury hinted it would implement the changes in accordance with the Financial Action Task Force’s Travel Rule, which sets out recommendations for regulators aimed at having cryptocurrency transactions comply with Combating the Financing of Terrorism and Anti-Money Laundering regulations. The FATF will release a report on how participating countries are implementing their travel rule at the end of June. Read More at COINGTELEGRAPH
Please Read Essential Disclaimer Information Here.
© 2024 Crypto Caster provides information. CryptoCaster.world does not provide investment advice. Do your research before taking a market position on the purchase of cryptocurrency and other asset classes. Past performance of any asset is not indicative of future results. All rights reserved.
Contribute to CryptoCaster℠ Via Metamask or favorite wallet. Send Coin/Token to Addresses Provided Below.
Thank you!
BTC – bc1qgdnd752esyl4jv6nhz3ypuzwa6wav9wuzaeg9g
ETH – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
SOL – DLvdMu85dW6pZMhw2E4S3pp81qQQGpy5UcdTsFEFBu4b
LITECOIN – ltc1qxsgp5fykl0007hnwgl93zr9vngwd2jxwlddvqt