90% of Crypto Firms Expect Full Travel Rule Compliance by Year-End
Almost all cryptocurrency firms are expected to comply with anti-money laundering transparency rules, specifically the Travel Rule, by the end of 2025. Key points from a recent survey by Notabene include:
- 90% of surveyed virtual asset service providers (VASPs) anticipate full compliance by midyear.
- All respondents expect to meet the Travel Rule requirements by year-end.
- Withdrawals are increasingly being blocked until beneficiary information is verified, rising from 2.9% in 2024 to 15.4% now.
- About 20% of VASPs return deposits if the required originator data is not provided.
The heightened focus on compliance correlates with the U.S. adopting a favorable crypto stance and the enforcement of digital asset regulations in Europe. The growth of dollar- and euro-pegged stablecoins also contributes to this trend.
However, challenges remain due to geographical compliance discrepancies and interoperability issues among different systems. Notabene emphasizes the necessity for an open loop system to effectively support stablecoin payment networks.