CEO at DeFi Alliance DAO

DeFi Alliance DAO

The Financial Action Task Force (FATF) is a global watchdog aimed at combating money laundering and the financing of terrorism. One of its most noteworthy cryptocurrency regulations is the "Travel Rule," or Recommendation 16. This rule mandates that Virtual Asset Service Providers (VASPs), including crypto exchanges, must collect and share personal information during transactions above a certain value. The Travel Rule has significant implications: 1. Privacy Concerns: It challenges the crypto ethos of decentralization and anonymity by requiring the collection of personal data. 2. Compliance Costs: The rule imposes a heavy financial burden on VASPs, especially smaller or decentralized...