This new proposal by the UK's HM Treasury to require both the originator and beneficiary of any transfer of a crypto-currency or other virtual/digital asset worth over £1,000 to be identified could well have far-reaching implications for this type of asset class. The so-called "travel rule" has applied to more traditional bank transfers for a number of years and therefore this step should likely come as no surprise. However, one cannot help but suspect it will be an unwelcome development for such providers.
Should it be implemented, this regulation's physical impact will be hard to judge given it will only apply to UK-based providers and as such a number of relevant entities may fall outside of its scope. However, as with my other recent post on crypto-currencies, it does very much highlight the growing global focus on crypto-currencies and tax compliance.
A new proposal from HM Treasury will require that any virtual-asset transfer of above GBP1,000 must be accompanied by detailed personal information of both the originator and beneficiary.