FATF Travel Rule
Financial Action Task Force standard mandating virtual asset service providers to share originator and beneficiary information for digital asset transfers, including stablecoins, to prevent illicit finance.
What is FATF Travel Rule?
The FATF Travel Rule, under Recommendation 16, requires virtual asset service providers (VASPs) to transmit customer data for transfers exceeding thresholds like USD/EUR 1,000, applying equally to stablecoins as seen in 2025 updates addressing their use by illicit actors such as DPRK groups. By 2025, 73% of jurisdictions had legislation for VASPs, with progress in Travel Rule adoption, though gaps persist in enforcement for DeFi and stablecoins. In the U.S., the GENIUS Act of 2025 integrates Travel Rule compliance for stablecoin issuers, enhancing AML/CFT measures amid rising sanctions evasion risks.
Related Terms
Price Chart
A graphical representation of a digital asset's historical price movements over customizable timeframes.
Mnemonic and Private Key
A mnemonic is a human-readable phrase used to generate and recover cryptographic keys, while a private key is a secret number authorizing Bitcoin transactions.
Slot in Ethereum
A 12-second time interval in a proof-of-stake blockchain where a validator can propose a new block of Ethereum, which may remain empty if no block is proposed.
Pool Depth (DEX)
The total value of digital assets in a DEX liquidity pool, determining its ability to handle trades with minimal price impact.
People's Bank of China (PBC)
China's central bank responsible for monetary policy and issuing the digital yuan.
Oracle
A mechanism that provides real-world data to blockchains for use in smart contracts.