Question 1

Are crypto exchanges regulated for AML?

Accepted Answer

Yes — almost universally. Australia: digital currency exchange providers must register with AUSTRAC since 3 April 2018. United States: convertible-virtual-currency exchangers and administrators are MSBs and must register with FinCEN. European Union: crypto-asset service providers (CASPs) are obli...

Question 2

What is the FATF travel rule?

Accepted Answer

FATF Recommendation 16 (the "travel rule"), extended to virtual asset service providers (VASPs) in 2019, requires originator and beneficiary information to travel with a transfer above a de minimis threshold (USD/EUR 1,000 default, lower in some regimes). For virtual asset transfers between VASPs...

Question 3

How does the EU Transfer of Funds Regulation apply to crypto?

Accepted Answer

Regulation (EU) 2023/1113 (the "TFR") extends the travel rule to crypto-asset transfers between CASPs from 30 December 2024, with no de minimis threshold (every transfer carries originator and beneficiary information). Transfers to and from self-hosted wallets above EUR 1,000 require additional v...

Question 4

What is "chain analytics" and where does it fit?

Accepted Answer

Chain analytics tools (Chainalysis, TRM Labs, Elliptic, Crystal) attribute on-chain addresses to real-world entities (exchanges, mixers, sanctioned services, darknet markets, ransomware operators) and trace fund flows. They sit alongside traditional sanctions / PEP / adverse-media screening as a...

Crypto, virtual assets & the travel rule