Crypto transfers face more stringent 'travel rule' scrutiny

Crypto asset service providers (CASPs) could soon find themselves facing more stringent reporting and information sharing obligations from SA's financial authorities.

The Financial Intelligence Centre (FIC) says it intends issuing a directive that requires CASPs, and other intermediaries that engage in crypto asset transfers, to provide more detailed and specific information on transactions.

The directive introduces a so-called travel rule, which stems from recommendations by the Financial Action Task Force (FATF) that seek to prevent terrorists and other criminals from having unfettered access to electronically facilitated transfers of funds, and to enhance the detection of illicit financial activity when it occurs.