FATF Travel Rule
Financial Action Task Force standard mandating virtual asset service providers to share originator and beneficiary information for digital asset transfers, including stablecoins, to prevent illicit finance.
What is FATF Travel Rule?
The FATF Travel Rule, under Recommendation 16, requires virtual asset service providers (VASPs) to transmit customer data for transfers exceeding thresholds like USD/EUR 1,000, applying equally to stablecoins as seen in 2025 updates addressing their use by illicit actors such as DPRK groups. By 2025, 73% of jurisdictions had legislation for VASPs, with progress in Travel Rule adoption, though gaps persist in enforcement for DeFi and stablecoins. In the U.S., the GENIUS Act of 2025 integrates Travel Rule compliance for stablecoin issuers, enhancing AML/CFT measures amid rising sanctions evasion risks.
Related Terms
Ethena USDe
A synthetic digital dollar stable asset on Ethereum, backed by hedged collateral to maintain a $1 peg while generating yield for holders.
Capital Inefficiency
The underutilization of provided liquidity in DeFi protocols, where most capital remains idle across unused price ranges.
At The Market (ATM)
A flexible equity offering allowing sales of shares into the market at prevailing prices over time.
BitMine Immersion (BMNR)
A blockchain technology company focused on digital asset mining and treasury management, holding the world's largest ETH treasury.
Celestia DA
A modular data availability network that offloads DA from Ethereum's execution layers, enabling scalable rollups with low costs.
Ask Side
The section of an order book listing all open sell orders, sorted from lowest to highest price.