The Travel Rule Protocol Working Group, a global independent industry body of leading virtual asset service providers (VASPs) dedicated to creating standards that adhere to the Financial Action Task Force’s (FATF) "Travel Rule" recommendations, is launching version 2 of its protocol.
The free, easy-to-use standard for communications between VASPs encourages mainstream adoption of virtual assets by enabling compliance with anti-money-laundering (AML), counter-terrorism-financing and know-your customer (KYC) protocols in line with the FATF’s Travel Rule recommendations.
Version 2 of compliance protocol
The new Travel Rule Protocol (TRP) update builds upon the previous version 1.1.0 adding a simplified workflow for end users allowing them a familiar user journey, while fully complying with the FATF recommendations. Version 2.0.0 adds the ability for VASPs to create a very simple end user workflow, which helps the user provide all the information necessary for the VASP to comply with the FATF recommendations and bypasses the need for a seperate “VASP discoverability mechanism”.
“Transactional transparency in virtual assets is a crucial means of combating financial crime such as money laundering, terrorist financing and the sale of illicit products and services. The latest update to TRP 2.0 allows us and the virtual assets ecosystem as a whole to offer even safer services and protect our clients from criminal third parties.” - Christopher Kiew-Smith, Chief Compliance Officer Zodia and member of the TRPWG
As more and more jurisdictions implement regulations which are aligned with the FATF Travel Rule recommendations it is expected that many existing VASPs and new entrants into the expanding Virtual Asset space will need to adopt a Travel Rule solution very soon, so the publication of the latest version of Travel Rule Protocol is very timely for the industry. Especially Switzerland has been one of the first countries to already enforce the FATF Travel Rule.
About the TRP Working Group
The Travel Rule Protocol Working Group, a global, open independent, non-profit industry body of more than 25 leading virtual asset service providers (VASPs) across more than 10 Financial Industry Task Force (FATF) member jurisdictions. The Group includes pioneering VASPs, banks, investment firms and other members.
The Group’s main goal is the creation of a pragmatic protocol for compliance with the FATF Travel Rule particularly during the so called “Sunrise Period”. The industry Working Group has regular weekly meetings, and is open to new members. The Group includes pioneering VASPs, banks, investment firms, and Swiss Travel Rule expert 21 Analytics. Version 1.0 of TRP was used for the first automated, Travel Rule-compliant Bitcoin transaction between Swiss financial intermediaries in August 2020.
