Second Travel Rule Working Group in Hong Kong

VerifyVASP hosted a second Travel Rule Working Group in Hong Kong, attended by over 20 representatives of 14 Virtual Asset Service Providers (“VASPs”) who had either already obtained or were in the process of applying for a licence.

Whilst the inaugural working group introduced Travel Rule concepts and draft regulations at the time that SFC was conducting their consultation on virtual assets regulation, this session focused in the practical aspects of the Travel Rule as the industry gears up towards actual implementation whilst taking into account international regulations.

Travel Rule Working Groups are industrial initiatives organised by VerifyVASP around the globe to help bring virtual asset service providers (VASPs) and stakeholders together in an engaged and collaborative environment. Since Travel Rule is a message exchange, close industry collaboration is needed in order for seamless compliance across the industry, ranging from what information to send and when so that upstream and downstream processes including beneficiary verification and screening can be aligned with a working Travel Rule solution.

These working groups are an opportunity to explore all aspects of the local and international regulations along with the Financial Action Task Force (FATF)’s guidance in detail in order to develop best practices in local and international regions.

ShihYun Chia, CEO of VerifyVASP, reviewed the Securities and Futures Commission of Hong Kong’s required information for Travel Rule compliance (12.11.5–6, 12.11.19/20) in comparison with FATF guidance and international adoption before delving into some of the more challenging details of implementation. He then gave an overview of the rapidly changing Travel Rule landscape in 2024 and a deep dive into some of the solutions appropriate to different scenarios, which prompted an interactive discussion among attendees. The day finished with a review of best practice when it comes to Travel Rule implementation that can help VASPs remain fully compliant at all times whilst helping combat AML/CFT.

If you are interested in joining one of our future working groups, please contact corporate@verifyvasp.com.