Crypto Exchange Gemini Implements Measures to Comply with UK Travel Rule
Gemini, a crypto exchange, recently announced that it will be making changes to comply with the controversial crypto Travel Rule in the United Kingdom. However, some experts are expressing concerns about the impact of these changes on customers.
The announcement from Gemini stated that it will restrict outward cryptocurrency transfers to a list of 58 virtual asset service providers (VASPs) registered under the Travel Rule Universal Solution Technology (TRUST) starting on Nov. 17. The restrictions will also apply to incoming transfers from non-TRUST VASPs starting in December.
According to Trezor Bitcoin analyst Josef Teteka, these new restrictions will make it much harder for Bitcoin and other cryptocurrency users to move their assets into self-custody. He argues that this move goes against the fundamental principles of Bitcoin, which prioritize freedom, privacy, and self-sovereignty.
Expert Concerns
Tetek expressed concerns about overregulation and the potential loss of control for everyday citizens around how they save, spend and transfer their assets. He also questioned why crypto exchanges should have the power to dictate transactional freedom.
Other members of the crypto community have also expressed negative sentiment about Gemini’s recent announcement.
The Travel Rule and Its Impact
The Travel Rule was created by the United Nations agency Financial Action Task Force in June 2019 as a set of global standards aimed at making it more difficult for criminals to use cryptocurrencies for illicit activity. The U.K. passed legislation to begin enforcing the Travel Rule in July 2022.
Among the 58 VASPs not restricted to transact with Gemini U.K. users include Binance US, Coinbase, Circle, Fidelity Digital Assets, Kraken and PayPal.
Hot Take
In conclusion, while compliance with regulations is essential in any industry, it’s crucial to balance this with ensuring that customers’ rights and freedoms are not compromised. The implementation of measures like those announced by Gemini should be carefully evaluated to ensure they do not undermine the core values of decentralization and individual sovereignty that underpin cryptocurrencies.
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