Heaptalk, Jakarta — A global crypto-asset platform, Luno, announced has implemented the Travel Rule principle in Indonesia to identify and verify customers who send and receive a crypto asset.
“The Travel Rule implementation is a part of our goals to advance the crypto industry through a strict Electronic Know-Your-Customer (e-KYC) practice while keeping our customer’s privacy. By providing the Travel Rule, Luno’s users will feel secure and confident for investing in our application,” Country Manager of Luno Indonesia, Jay Jayawijayaningtiyas, said in a statement.
Based on the Bappebti report, crypto asset investors encountered significant growth, from 11.2 million at the end of December to 14.1 million in May 2022, exceeding the number of recorded investors in the capital market of 8.85 million clients.
Simultaneously, a crypto transaction value increased by 1,224% (approximately $57 billion) in 2021, compared to 2020 with only $4.3 billion. A similar report also revealed the crypto asset transaction had reached $12.8 billion from January to May 2022.
However, the crypto industry has also unlocked the potency of illegal acts and fraud crimes. Refers to the Chainalysis record, the existence of crypto asset crimes has produced disadvantages to around $14 billion in 2021. Regardless of the high criminal acts around this sector, an illegal crypto asset transaction outcome was only 0.15% of the total transaction values in 2021.
As a part of preventive efforts against crypto-based crimes, Luno will execute the Travel Rule principle, obligatory for prospective Crypto Assets Physical Traders (PFAK) to collect multiple information about crypto asset receivers. This concept also allows investors to exchange information with other prospective crypto asset traders regarding details about the sender who makes the transactions.
As prospective physical crypto asset traders officially registered in Bappebti since March 31st, 2020, Luno perceives the Travel Rule concept as a proper solution to avoiding illegal acts, including money laundering and funding terrorism. The execution of this principle also aligned with the Society for Worldwide Interbank Financial (SWIFT) system that financial institutions have enforced for over twenty years.
“As a part of our further contributions, we will continue to focus on ensuring the simplicity of accessing crypto-asset platforms for our customers. Also, we aim to provide information transparency, crypto-asset education, and current insights regarding the crypto-assets industry, particularly for the blue-chip category,” concluded Jay (7/18).
