Gemini Adapts to UK’s Travel Rule, Implements Outward Transfer Restrictions to Comply
Gemini, a cryptocurrency exchange, has implemented changes 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 in the UK. These changes involve a set of global standards requiring financial institutions and VASPs to share information about senders and recipients of virtual assets. To achieve this, Gemini has partnered with Travel Rule Universal Solution Technology (TRUST).
Starting November 17, Gemini will limit outgoing transfers of Bitcoin and other cryptocurrencies to a specific list of 58 TRUST-registered companies, with notable names like Binance US, Coinbase, Circle, Fidelity Digital Assets, Kraken, and PayPal among those not restricted from transacting with Gemini’s UK users. The intention is to ensure transparency and compliance with the Travel Rule. Also, inbound transfers from non-TRUST VASPs to Gemini may face restrictions from December 1 so as to ensure transparency of transaction information.
Furthermore, additional information will be requested when depositing or withdrawing from your Gemini wallet to another crypto address, including your name, beneficiary details, and sometimes your address. This information will only be shared between the sending and receiving providers.
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 Gemini but will be removed from deposit and withdrawal options, except for withdrawing to a self-hosted wallet. Meanwhile, this move aligns with its efforts to comply with the United Kingdom’s evolving regulatory landscape for the digital asset industry.
Gemini Tightens Compliance as UK Cracks Down on Crypto
Gemini regulatory compliance comes as the UK tightens its grip on the digital asset industry.
The UK has been actively shaping a regulatory framework for the growing crypto industry. This includes introducing a financial promotion regime and passing a bill that empowers law enforcement to seize crypto assets linked to illicit activities.
The Travel Rule, established by the United Nations agency Financial Action Task Force in June 2019, sets global standards requiring Virtual Asset Service Providers (VASPs) and other financial institutions to share information about the senders and recipients of virtual assets.
The aim is to make it tougher for criminals to exploit cryptocurrencies for unlawful activities.
In response to these regulations, Gemini revamped its operations to comply. This involved creating dedicated social media channels for UK customers and adding risk warnings to its platform. The UK began enforcing the Travel Rule in September 2022 after passing legislation in July of the same year.
Gemini, however, urges its UK customers to stay informed about these changes, emphasizing its commitment to collaborative efforts with regulators for the crypto industry’s compliant, sustainable, and secure growth. The implementation of the Travel Rule is seen as a progressive step in this direction.