Gemini’s UK branch recently announced a new policy that will limit cryptocurrency transfers exclusively to Travel Rule Universal Solution Technology (TRUST)-registered Virtual Asset Service Providers (VASPs) starting from November 17th. This decision comes as a result of the Travel Rule regulations, which now mandate VASPs to share sender and receiver information for crypto transactions. In order to comply with these requirements, Gemini has partnered with TRUST, an industry-driven solution that facilitates information sharing and combats fraudulent activities in the crypto industry.
As part of this new policy, Gemini will restrict outgoing transfers of Bitcoin and other cryptocurrencies to only 58 registered crypto-related companies. Some of the registered VASPs include Anchorage, Binance.US, BitGet, BitGo, Coinbase, and Circle, among others. This move aims to ensure compliance with the Travel Rule and maintain transparency in transactions.
In addition to the restrictions on outgoing transfers, Gemini will also limit incoming transfers from non-TRUST VASPs by December. Users attempting to make inbound transfers to Gemini from non-TRUST VASPs may face freezing or restrictions due to the potential lack of required information for transparency in the transaction. Gemini is taking these measures to align its operations with the evolving regulatory landscape of the United Kingdom.
Gemini’s decision to implement these restrictions and partner with TRUST aligns with its efforts to comply with the United Kingdom’s evolving regulatory framework for the digital asset industry. The UK has recently taken significant steps to establish a regulatory framework, including introducing a financial promotions regime and passing a bill that gives law enforcement agencies the authority to seize crypto assets involved in illicit activities. In response to these new regulations, Gemini has restructured its operations to comply with the rules. This includes establishing dedicated social media channels for UK customers and introducing risk warnings on its platform.
The new policy implemented by Gemini UK Limited reflects the company’s commitment to compliance and transparency in the cryptocurrency industry. By limiting transfers to TRUST-registered VASPs and partnering with TRUST to facilitate information sharing, Gemini aims to combat fraudulent activities and ensure adherence to regulatory requirements. While these restrictions may impose certain limitations for users, they ultimately contribute to a more secure and regulated digital asset landscape. As the United Kingdom continues to establish its regulatory framework, it is likely that other exchanges and service providers will adopt similar measures to meet the evolving compliance standards.