South Africa implements FATF Travel Rule for digital assets

By: bitcoin ethereum news|2025/05/09 23:45:04
0
Share
copy
Homepage > News > Finance > South Africa implements FATF Travel Rule for digital assets The Financial Action Task Force’s (FATF) Travel Rule for digital currency has taken effect in South Africa, ushering in a new era of transparency in the country’s digital assets sector. The Financial Intelligence Center (FIC) published Directive 9 in November 2024, notifying all VASPs that the Travel Rule would take effect on April 30. Under the Rule, VASPs must collect the originator and beneficiary information, including their full names, ID or passport numbers (if they are South African or foreigners, respectively), dates of birth and residential addresses. Transaction details such as amount, date and the unique transaction ID must also be included. The Travel Rule applies to all transaction sizes. However, some of the requirements are simplified for transactions below R5,000 ($270). The rule further requires VASPs to monitor and report any suspicious transactions. All the collected data must be stored for at least five years and made available to authorities upon request. South African VASPs have taken measures to comply with the new regulations, with violations punishable by fines and license revocations. Binance announced two weeks ago that it would require transaction information from its users, with violators risking unprocessed transactions. Others, like homegrown exchanges Luno and VALR, have made similar announcements. Luno told its users that the Travel Rule will allow VASPs to adhere to the same standards as their legacy finance peers. “If this sounds kind of familiar, the Travel Rule has applied to financial institutions like banks for over twenty years. Banks use the SWIFT system to interact with one another for this purpose,” Luno stated. VALR has also reminded users to provide counterparty details since mid-April in preparation for the new standard. The exchange has partnered with London-based identity service provider Sumsub to comply with the rule. As hundreds of VASPs scramble to comply with the new standard, Bitcoin wallet Centbee has been ready for years. Co-founder Angus Brown told CoinGeek three years ago that this had been the norm for the previous 12 months. “We have been treating it as if it’s applicable in our business for the last year. So, we are doing all the things we’re supposed to do and are compliant already,” he stated. However, others have expressed concerns, particularly over the low reporting threshold of $270. Sean Sanders, whose company, Altify, offers simple ‘crypto’ investment products, says it’s one of the lowest thresholds globally. “This will place extra compliance costs on investment platforms like ours, which may result in slower transaction processing times and an overall worse user experience for our users relative to platforms operating outside of South Africa,” he told a local outlet. Watch | AlphaDAPP: Revolutionizing blockchain adoption in Africa title=”YouTube video player” frameborder=”0′′ allow=”accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share” referrerpolicy=”strict-origin-when-cross-origin” allowfullscreen=””> Source: https://coingeek.com/south-africa-implements-fatf-travel-rule-for-digital-assets/

You may also like

The Impossible Triangle of DeFi Lending

Borrowers want fixed interest rates, while lenders seek immediate liquidity; this is the dilemma of on-chain lending, where both cannot be achieved simultaneously.

Bitcoin ETF News: Why Bitcoin Is Falling Even After $2.43B ETF Inflows in April

Bitcoin ETF news today shows $2.43B in April inflows as institutions absorbed thousands of BTC, yet the price dropped from $79K to $76K. Traders are now watching whether the $80K resistance breaks or triggers another pullback.

What Is RWA in Crypto? Real-World Assets Explained (2026 Guide)

What Is RWA in Crypto?RWA stands for Real-World Assets — traditional financial assets like bonds, real estate, gold, and private credit that have been converted into blockchain tokens.

Revisiting RWA: Nearly 50,000 people's first on-chain transaction was not Bitcoin, but stock indices and crude oil

The narrative of RWA is not about traditional finance trying to capture crypto users, but rather crypto trying to capture traditional users.

Altcoin Price Outlook 2026: The Rotation Is Coming — Just Not the Way You Think

Bitcoin dominance at 58%, Fear & Greed at 39. If you think altcoin season is dead, you're reading the wrong signals. Here's what the data actually says about what comes next.

Oracle: The Second Battlefield Behind the Prediction Market War

By 2026, the oracle track has essentially evolved from the early "data pipeline" into a "verifiable facts layer" that supports the entire on-chain economy, and prediction markets serve as a magnifying glass to observe the competition in this red ocean.

Popular coins

Latest Crypto News

Read more
iconiconiconiconiconiconicon
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com