Changes to Align with the Travel Rule
Gemini, the popular cryptocurrency exchange, has recently undergone revisions in response to new regulations affecting virtual asset service providers (VASPs) in the UK. On November 7, Gemini announced adjustments to align with the new Travel Rule regulations implemented in the UK. These regulations require financial institutions and VASPs to share information about the senders and recipients of virtual assets, establishing global standards for transparency and compliance.
Partnership with TRUST to Facilitate Compliance
To adhere to the Travel Rule, Gemini has partnered with Travel Rule Universal Solution Technology (TRUST). As of November 17, outgoing transfers of Bitcoin and other cryptocurrencies from Gemini will be limited to a specific list of 58 TRUST-registered companies. Some notable names on this list include Binance US, Coinbase, Circle, Fidelity Digital Assets, Kraken, and PayPal. Gemini’s intention is to ensure transparency and compliance with the Travel Rule while continuing to provide services to its UK users.
In addition, starting from December 1, inbound transfers from non-TRUST VASPs to Gemini may face restrictions to ensure the transparency of transaction information. It is important to note that when depositing or withdrawing from your Gemini wallet to another crypto address, you may be required to provide additional information such as your name, beneficiary details, and sometimes your address. This information will only be shared between the sending and receiving providers, further enhancing transparency.
Gemini is also streamlining its supported tokens. From November 17, 2023, only transfers of ERC-20 tokens, ETH, and BTC will be supported on Gemini. Unsupported tokens can still be traded and held within the platform but will no longer be available for deposit and withdrawal, excluding withdrawals to self-hosted wallets.
The UK’s Regulatory Landscape for the Digital Asset Industry
Gemini’s regulatory compliance measures align with the UK’s tightening grip on the digital asset industry. The UK has been actively shaping a regulatory framework to monitor the growing crypto industry. This includes introducing a financial promotion regime and passing legislation enabling law enforcement to seize crypto assets associated with illicit activities.
The Travel Rule, established by the United Nations agency Financial Action Task Force in June 2019, sets global standards that require VASPs and other financial institutions to share information about the senders and recipients of virtual assets. The aim is to create a more robust framework that hinders criminals from exploiting cryptocurrencies for unlawful activities.
Gemini’s Efforts for Compliance and Collaboration
Gemini has made significant operational changes to ensure compliance with these regulations. It has created dedicated social media channels specifically for UK customers and incorporated risk warnings on its platform. The UK began enforcing the Travel Rule in September 2022 after passing legislation in July of the same year.
Gemini values transparency and emphasizes its commitment to collaborative efforts with regulators to promote compliance, sustainability, and security within the growing crypto industry. The implementation of the Travel Rule is seen as a progressive step in the direction of achieving these goals.
