Binance Joins Global Travel Rule

The largest cryptocurrency exchange Binance has agreed to monitor all user transactions, transmitting information about those whose transaction volume exceeds $1,000, in accordance with the new rules of the Global Travel Rule (GTR) organization, developed to combat money laundering by the Financial Action Task Force (FATF).

Binance’s joining of GTR reflects its desire to comply with FATF recommendations and make its platform safer for users. The Global Virtual Asset Service Providers (VASP) community, united in the GTR alliance, uses comprehensive solutions to comply with the requirements of the international rule for combating money laundering known as the Travel Rule.

According to FATF recommendations, financial institutions and VASPs must collect and transmit personal data of users conducting transactions over $1,000, including information about the sender, the address of their wallet, physical address, and identification numbers. This rule is intended to help law enforcement agencies combat crime, and more than 200 countries have already joined it.

Despite the adoption of the Travel Rule in some countries, there are disputes in the crypto community regarding its compatibility with the ideals of cryptocurrencies. Critics of the rule argue that it contradicts the fundamental principles of financial autonomy characteristic of cryptocurrencies.

For example, the recently elected president of Argentina, Javier Milei, received a call from the local crypto community not to accept the Travel Rule, which they call “draconian rule.” Nevertheless, as the number of countries implementing this rule increases, compliance becomes increasingly widespread and mandatory for participants in the cryptocurrency market.

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