Definition ∞ Travel Rule Expansion denotes the extended application of the Financial Action Task Force (FATF) Travel Rule to a broader range of digital asset transactions and entities. This rule mandates that Virtual Asset Service Providers (VASPs) collect and transmit originator and beneficiary information for transactions above a certain threshold. The expansion aims to increase transparency and accountability in digital asset transfers. It seeks to align crypto with traditional finance regulations.
Context ∞ The global implementation of the Travel Rule and its ongoing expansion present significant operational and technological challenges for VASPs. Industry efforts are focused on developing interoperable solutions to facilitate secure and compliant information sharing. This regulatory development is a key driver for anti-money laundering compliance in the digital asset space.
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