Introduction of the the Virtual Asset and Initial Token Offerings Services (Travel) Rules 2022
In August 2022, the Financial Services Commission (FSC) issued the Virtual Asset and Initial Token Offerings Services (Travel) Rules 2022 (the “Rules”) in accordance with the Virtual Asset and Initial Token Offerings Services Act (the “Act”).
The Rules provide additional obligations for virtual asset service providers, intermediary virtual asset service providers and financial institutions, in addition to the requirements of section 19 of the Act, with regards to cross-border wire transfers or batch file transfers of virtual assets, on behalf of customers.
The Rules also imposes specific requirements for intermediary virtual assets service providers. Inter alia, they are required to:
- keep information received on originator and beneficiary for a period of at least 7 years after completion of the transactions for any wire transfers and transfer of virtual assets
- take reasonable measures to identify transfer of virtual assets that lack originator and beneficiary details
- to adopt a risk-based policies and procedures to determine when to execute, reject or suspend a transfer of virtual assets as well as establish procedures to be applied in case originator and beneficiary could not be identified
For more information, please consult the Rules which can be accessed Here