According to Australian Home Affairs, The Crypto Travel Rule Lacks Technical Solutions

Cryptocurrency Cryptocurrency Regulation News

The government will not impose crypto travel limitations until it has finished the creation of new technologies, ensuring appropriate technological capabilities.

According to Daniel Mossop, assistant secretary of the Australian Department of Home Affairs, who testified before the Senate Committee on Australia on Friday, August 27, 2021, a technological solution that “eliminates a lot of the legwork” would be a “game-changer” in the fight against money laundering. According to Mossop, the technological answer we seek does not exist.

The name of the Crypto Travel Rule refers to the Travel Rule of the United States Banking Privacy Act, which it imitates. To provide a more complete regulatory framework, this law is thought to be a supplement to existing anti-money laundering (AML), Know Your Customer (KYC), and Know Your Transaction (KYT) statutes (KYT).

Over two years have passed since the FATF stated that bitcoin holdings will be subject to its anti-money laundering regulations. The travel guidance aids banks in adhering to overseas regulatory requirements. All digital asset transfers must include descriptive information such as the sender’s national identity number, the recipient’s location, the customer’s ID number, the recipient’s name, and the recipient’s account number, as suggested by travel rule suggestion 16.

Both KYC and KYT are being expanded to improve the identification and prevention of questionable transactions, which are assisted by the usage of unregistered user accounts to enable the expansion. Due to the crypto legislation, tourists face the risk of getting financial support from terrorists. This is a continuation of how cryptocurrency firms have been exposed to anti-money laundering and counter-terrorist funding regulations in past years.

Access to illegal financial resources will be prevented through the use of technology. In a recent interview, CEO Nicole Rose of Austrac indicated that her company was particularly vulnerable to regulatory action against cryptocurrency exchanges.

Due to technical difficulties, tracing crypto transactions is tough.

Cathie Armour, the human trafficking commissioner in Australia, shared her legal viewpoint on the subject of human trafficking in the country. Should cryptocurrencies be classified as financial goods or as distinct from other forms of investments?

The Department of Home Affairs has made several regulatory changes that must be completed before the new travel law may take effect. Once all of the necessary conditions have been satisfied, the regulation in question may be revised.

The Australian Victoria Police recovered more than AUD 8.5 million (USD 6 million) in digital assets in August 2021 as part of a narcotics investigation on the dark web, according to the Australian Victoria Police. According to police, this is the greatest seizure of cryptocurrency in Australian history. This highlights the need of enacting a cryptocurrency travel policy to limit the spread of cryptocurrency-related criminality.

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