What Is the “Travel Rule” and How Does It Apply to Stablecoins?
The FATF "Travel Rule" requires financial institutions (including centralized crypto exchanges and potentially stablecoin issuers) to share identifying information about the sender and receiver for transactions above a certain threshold. For stablecoins, this could mandate KYC/AML compliance for transfers, significantly impacting the anonymity and fungibility of centralized stablecoins.