Are you new to the cryptocurrency world and feeling a bit lost? Don't worry, you are not alone. The cryptocurrency space can be daunting for newcomers, with its many terms, abbreviations and definitions that can be difficult to understand.
ATAIX crypto glossary will help make sense of some of the most common cryptocurrency terms and definitions. Armed with this information, you'll be ready to start participating in this exciting and innovative new economy!
What is FATF Travel Rule (Financial Action Task Force)?
The Financial Action Task Force's (FATF) Travel Rule requires crypto exchanges to collect and verify the identity of their customers when they send or receive digital assets worth more than $1,000.
This is similar to how traditional banks are required to collect and verify customer information for large transactions. The Travel Rule is designed to prevent money laundering and terrorist financing through digital assets.
Crypto exchanges that don't comply with the Travel Rule may be fined or blacklisted by the FATF. This could make it difficult for them to do business with traditional financial institutions.
Compliance with the Travel Rule is a complex and costly process, but it's necessary to ensure the legitimacy of the crypto industry. Exchanges that don't comply with the Travel Rule may be at a disadvantage as the industry matures.