Financial Action Task Force (FATF) travel rule compliance service providers VerifyVASP and CODE have signed a memorandum of understanding to link their services before the rule goes into full effect in South Korea this Friday.
See related article: South Korean crypto businesses scramble to meet FATF travel rule
Fast facts
- The two entities are backed by the nation’s four fully licensed crypto exchanges, with VerifyVASP being founded by Upbit operator Dunamu, and Bithumb, Coinone, and Korbit forming CODE.
- The linking of the two services allows users from the four exchanges to transfer crypto to and from the founding exchanges.
- The FATF travel rule is a global set of guidelines for digital asset companies to counter money laundering and terrorist financing that mandates service providers to collect and disclose customer information for transactions above a US$1,000 threshold.
- Travel rule compliance must be met for all transactions over a million Korean won (US$824), starting March 25.
- Neighboring Japan’s crypto exchanges registered under the Japanese Virtual Currency Exchange Association (JVCEA) will adopt the travel rule by April 1.
See related article: How to avoid the pitfalls of FATF’s crypto travel rule