Sumsub announces free trial of Travel Rule solution for UK VASPs
The free trial of Sumsub’s Travel Rule solution aims to support crypto businesses in complying with the new UK Crypto Travel Rule legislation and to prepare for the EU’s Transfer of Funds Regulation (TFR) and Markets in Crypto-Asset (MiCA) regulations, set to take effect in 2024.
Sumsub has announced the launch of a six-month free trial for its Travel Rule compliance solution, beginning on September 1st.
The move comes as the United Kingdom prepares to enforce the landmark Crypto Travel Rule legislation, effective September 1st, to combat money laundering and terrorism financing in the cryptocurrency industry.
Sumsub’s solution aligns with the Financial Action Task Force’s (FATF) Recommendation 16, extending compliance obligations to virtual assets (VAs) and Virtual Asset Service Providers (VASPs).
Free trial allows up to 10k outbound and unlimited inbound transactions
The Crypto Travel Rule legislation mandates that both senders and recipients involved in transfers with virtual assets exchange identifying information and ensure its accuracy. This data must also be conveyed to government authorities to enhance transparency and accountability in crypto transactions.
Sumsub initially introduced its Travel Rule solution in March. The product facilitates secure information transfers between VASPs, enabling crypto firms to send and receive Travel Rule messages for corresponding transactions.
The free trial offers a single console access, allowing up to 10,000 outbound transactions and unlimited inbound transactions. The trial period also includes free Anti-Money Laundering (AML) checks and the setup of unlimited rule configurations reflecting regulatory and business requirements.
Sumsub plans to offer premium and enterprise plan options with expanded transaction limits and additional features.
“UK-based VASPs could potentially become compliant from day one”
Jacob Sever, Co-Founder & Chief Innovation Officer at Sumsub, commented: “Addressing the compliance challenges posed by the Travel Rule requires a collective effort from everyone in the crypto industry – be it regulators, crypto businesses, users themselves, and verification platforms such as Sumsub. Compliance with legislation like the Travel Rule will play a pivotal role in fostering trust and transparency for the crypto industry, and we are proud to be at the forefront by providing an effective solution that caters to the demands of an increasingly complex regulatory landscape.
“Our free compliance product trial reflects our ambitions to ensure a compliant VASP ecosystem. UK-based VASPs could potentially become compliant from day one of the new legislation. We remain committed to anticipating regulatory changes and introducing visionary solutions for markets ahead of implementation, as we have done with our Travel Rule solution.”
Sumsub’s Travel Rule solution also prepares for EU’s TRF and MiCA
The free trial of Sumsub’s Travel Rule solution aims to support crypto businesses in complying with the new UK Crypto Travel Rule legislation and to prepare for the EU’s Transfer of Funds Regulation (TFR) and Markets in Crypto-Asset (MiCA) regulations, set to take effect in 2024.
The solution’s accessibility will enable new clients to join Sumsub’s extensive ecosystem, which encompasses over 1,000 crypto businesses and more than 500 VASPs.
Implementing the Travel Rule is designed to bolster transparency and accountability in crypto transactions, aligning the regulatory framework with the traditional financial sector. This move comes in response to the challenges faced by major crypto exchanges and global governments’ endeavors to enhance regulatory clarity.
While the Travel Rule’s global implementation has been deemed “relatively poor” by the FATF, some jurisdictions have enforced it. Japan, Hong Kong, and Portugal have implemented the rule, and Lithuania is set to enforce it in 2025. In the United States, the rule applies to VA transactions exceeding $3,000.
