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VASP Information Sharing

Definition ∞ VASP Information Sharing refers to the practice where Virtual Asset Service Providers exchange data about their customers and transactions. This exchange is typically mandated by regulations to combat money laundering and terrorist financing. It allows VASPs to comply with international standards, such as the FATF’s Travel Rule. The objective is to enhance transparency and reduce illicit financial activity across digital asset transfers.
Context ∞ VASP information sharing is a critical and evolving area of regulatory compliance within the digital asset sector. A key discussion involves developing secure and privacy-preserving methods for VASPs to exchange sensitive customer data. Future technological solutions and industry standards will aim to facilitate compliant information exchange while respecting data protection principles.

A sleek, metallic hardware wallet or secure element displays glowing blue digital data, representing cryptographic operations. The device features a prominent U-shaped frame with an integrated button, suggesting biometric authentication or transaction confirmation. Its robust design implies tamper-proof cold storage for private keys and seed phrases, essential for decentralized ledger security. This advanced module facilitates secure digital asset management and immutable record keeping, crucial for blockchain integrity and distributed consensus.

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FATF Expands Travel Rule Mandating Global Fraud and Proliferation Controls

Global VASPs must immediately integrate Confirmation of Payee systems to comply with the Travel Rule's new anti-fraud and proliferation financing mandate.