Sunrise

Crypto regulation raises challenging problems, and if crypto is here to help improve finance and humanity, the decentralized industry must find the best ...

The answer is compliant solutions that solve the Travel Rule and the Sunrise Issue. If we are going to be a compliant industry, we must ensure that regulation is possible (and frictionless) for all involved parties. If crypto is here to help improve finance and humanity, we deserve the best solutions to the most challenging problems. According to the "Sunrise Issue" analogy, VASP A can see the sunrise in their location and wants the ability to talk about it (exchange customer details) with a counterpart who lives in a different place, where the sun hasn't yet come up (VASP B). VASP "B" is located where the Travel Rule isn't yet a regulatory obligation. VASP "A" (a crypto exchange) operates in a jurisdiction where Travel Rule compliance is required. The FATF is responsible for the Travel Rule, a financial regulation that requires banks, crypto exchanges and other crypto players, as of 2020, to share data on participants (customers) in financial exchanges exceeding 1,000 USD/EUR. Some countries have even reduced the threshold to zero. As a result, crypto exchanges are experiencing a detrimental roadblock when attempting to comply (and process compliant transactions between each other) amid global regulation.