A new report released on Tuesday by Crystal Blockchain attempts to categorize cross-border transactions of Bitcoin (BTC) based on their “country of origin,” which may have important implications for the Financial Action Task Force's Travel Rule.
The analysts used direct exchange-to-exchange transactions and their country of incorporation to categorize Bitcoin transfers by their provenance. Despite the fact that Bitcoin is fundamentally borderless by nature, and that a country of incorporation does not fully indicate the origin of its funds, this classification is required for complying with the Travel Rule.