Korea Blockchain Association Announces Research Report on Standardization of the 'Travel Rule'

[Asia Economy Reporter Gong Byung-sun] The Korea Blockchain Association announced on the 23rd that it has published the country's first research report on the standardization of the Travel Rule. The Travel Rule refers to the regulations set by the Financial Action Task Force (FATF), an international anti-money laundering organization, which require virtual asset service providers to collect real-name information of transaction parties.

In September, the association signed a research service contract with KAIST's (Korea Advanced Institute of Science and Technology) Korea 4th Industrial Revolution Policy Center and conducted research aimed at implementing and standardizing the Travel Rule for domestic virtual asset service providers. To this end, it launched the 'Global Travel Rule Standardization Task Force (TF)' and undertook analysis of the current status and structure of Travel Rule solutions both domestically and internationally, as well as establishing a technology-neutral interoperability model for Travel Rule solutions among virtual asset service providers.

The research report identified the cause of delays in the preparation and implementation of Travel Rule standards in the standard structure of the funds transfer rules. Accordingly, it includes ▲a comparative analysis of the characteristics and structure of cryptocurrencies based on blockchain ▲an explanation of the recent FATF revised guidelines ▲detailed Travel Rule standards by Travel Rule solution providers.

Oh Gap-su, chairman of the Korea Blockchain Association, said, “I am pleased that the collaboration between the association, KAIST, member companies, and the top domestic and international expert working groups has laid the foundation for this research report,” adding, “We will actively communicate Korea’s case to international organizations to lead global discussions on Travel Rule standardization and continue to engage in ongoing consultations.”