The bureau will wait to develop more technology in order to ensure there are sufficient technical capabilities before implementing travel rules on cryptocurrencies.
Australia’s Department of Home Affairs assistant secretary Daniel Mossop, who appeared before the Senate Committee on Australia stated on 27 August 2021, Friday that “depends on the way that is implemented, so a technological solution that takes a lot of the legwork out of that would be a game-changer.” Mossop further stated “We are not at the point where, globally, there is such a technological solution.”
It was called the Crypto Travel Rule because it mimics the U.S. Banking Privacy Act’s Travel Rule. This regulation is believed to be an extension to replace Anti-money laundering (AML), Know Your Customer (KYC) and Know Your Transaction (KYT).
It has been over two years since the FATF announced crypto would come under its AML rules. The travel rule is essential in helping financial institutions follow global regulations. Travel rule recommendation 16, all digital asset transfers must provide descriptive information such as national ID, location, customers, ID number, name, account number. It is an extension of KYC and KYT that helps in revealing the true identities behind registered users accounts as well as suspicious transactions.
The crypto travel rule is to encounter the possibility of terrorism financial aids. It will be an extension of how crypto industries comply with Anti-money laundering (AML) and Anti- Terrorism Financing (CFT) policies in recent years. The implementation will block any access to criminal access funds via electronic ways.
Nicole Rose, Australian Transaction Reports and Analysis Centre (Austrac) CEO, commented that her agency is prone to regulate crypto exchanges to implement Anti-Money Laundering and Counter-Terrorism Financing regulation.
Technology issues hindering crypto tracking
Commissioner Cathie Armour commented from a legal perspective on how Australia should address this issue. Should Australia view cryptocurrencies as financial products, or should they have their own categories covering all digital assets?
Department of Home Affairs addresses more factors that need to be perfected before the crypto travel rule can be implemented. However, there is always a possibility of adopting the rule once every condition had being met.
Last 20 August 2021, Australia’s Victoria Police had recently conducted a massive cryptocurrency seizure tied to a dark web drug bust after finding almost AUD 8.5 million ($6 million) worth in digital assets. According to the authorities, the crackdown is the biggest crypto seizure made in Australia in history. Based on this alone, crypto travel rule implementation needs to be enforced to avoid the spreading of crypto-financial crime.
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