Q16 · UPPSC current affairs · 9 September 2026 · News · FATF Report Digital Hawala Virtual Assets Money Laundering

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What is the primary function of the 'Travel Rule' mandated by the FATF in the context of virtual assets?

A Requiring Virtual Asset Service Providers to share sender and receiver information during crypto transfers.
B Restricting individuals from carrying physical cash across international borders without declaration.
C Imposing custom duties on the import of hardware cryptocurrency wallets.
D Mandating physical passport checks for opening decentralized finance (DeFi) wallets.

Correct answer: (a) Requiring Virtual Asset Service Providers to share sender and receiver information during crypto transfers.

Explanation

Option A is correct because the Travel Rule is an FATF mandate requiring Virtual Asset Service Providers to share sender and receiver information during crypto transfers. Options B, C, and D are incorrect and do not describe the crypto Travel Rule.

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