From Features

Spotlight on Crypto


Paying By The Rules: Cryptoassets, The CARF And The 'Travel Rule

James Brockhurst
Forsters LLP, London
Oliver James
Forsters LLP, Mayfair, London

As the volume, complexity and value of domestic and cross-border crypto transactions increase, international organisations such as the Financial Action Task Force (FATF) and the OECD have sought to introduce a number of measures to increase the security, regulation and transparency surrounding cryptoasset trades. Domestic implementation of these measures will likely follow soon.

In light of global conflicts and the financial crime risks associated with cryptoassets, governments around the world are looking for ways to monitor, track and record crypto transactions to minimise the risk of money laundering and fraud.

Two of the most prominent phrases ringing in the ears of finance professionals and traders in recent months have been the Crypto-Asset Reporting Framework (CARF) and the FATF 'Travel Rule.' The process of implementing these schemes into domestic legislation has now begun; a clear understanding of the compliance requirements demanded by both will soon be vital to Virtual Asset Service Providers (VASPs) including exchanges and custodians, founders, token issuers, trust and corporate service providers, and their legal advisers.


The OECD have promoted international regulations in recent years to combat tax evasion, with their flagship initiative, the Common Reporting Standard (CRS) requiring financial institutions to collect data on their cus…