The Travel Rule is used to refer to recommendation 16 issued updated in June 2019 by the Financial Action Task Force (FATF). This rule requires virtual asset service providers (VASPs) to share identity details and know-your-customer (KYC) data between them before transacting together. More simply put, for each transaction, the origin VASP must transfer data about the sender to the destination VASP and the destination VASP must transfer data about the receiver to the origin VASP. The FATF assesses the progress made by the public and private sectors in the implementation of the Travel Rule every year.
Today it’s still quite difficult to enforce this travel rule as most of the countries have not implemented this rule and the way of sharing information is not clearly defined as there is no common protocols between VASPs.
At Scorechain, we are in discussion with travel rule working groups and providers and also with our clients to facilitate their compliance with this new recommendation. We are supporting all initiatives based on open protocols to allow VASPs using different providers to comply this the Travel Rule, we plan to provide integration of Travel Rule solution within our platform