Gemini’s U.K. branch will limit cryptocurrency transfers exclusively to Travel Rule Universal Solution Technology (TRUST)-registered Virtual Asset Service Providers (VASPs) starting Nov. 17.
The exchange attributed its decision to the Travel Rule regulations mandating VASPs to share sender and receiver information for crypto transactions. Gemini said:
“In the UK, the Travel Rule applies to all transactions, necessitating VASPs to share data such as the sender and recipient names and crypto address. The specific information required may differ based on the risk profile of the transaction.”
To meet these requirements, the exchange partnered with TRUST, an industry-driven solution that facilitates information sharing and combats fraudulent activities in the crypto industry.
In addition to restricting outgoing transactions, Gemini will limit incoming transfers from non-TRUST VASPs by December.
“Gemini may freeze and/or restrict users who are attempting to make inbound transfers to Gemini from a non-TRUST VASP,” part of the statement reads. “This is due to these transactions potentially missing the required information to ensure transparency of the transaction.”
The U.K. has recently taken significant steps to establish a regulatory framework for the emerging industry, including the introduction of a financial promotions regime and the passage of a bill that gives law enforcement agencies the authority to seize crypto assets involved in illicit activities.
Due to these new regulations, Gemini restructured its operations to comply with the rules by establishing dedicated social media channels for U.K. customers and introducing risk warnings on its platform.