The Monero Compliance Workgroup has stated that the Monero (XMR) network is not subject to U.S. Fiscal Crimes and Enforcement Network (FinCEN) guidelines regarding the Funds Travel Rule, in a Dec. five blog post.

What is the Funds Travel Rule?

The Funds Travel Rule requires financial institutions who are sending and/or receiving funds to store and transmit sure information about the transfer if information technology is valued at over $3,000 or equivalent amount.

However, in its May 2022 guidelines, FinCEN states that:

"If a given transmission protocol is unable to accommodate such data, the obligated person may provide such information in a message different from the transmittal club itself."

This suggests that in that location is no need to transmit this information on-chain.

Compliance is the responsibility of exchanges, non cryptocurrencies

Any regulated Anti-Coin Laundering/Know Your Client compliant exchange should have the required transactional data and is probably already storing it. But in its statement, Monero concludes that the Funds Travel Rule does not utilise to Monero itself, or indeed to whatsoever cryptocurrency.

Monero'southward Compliance Workgroup notes:

"Information technology would announced to be inappropriate to state that any cryptocurrency is compliant or not compliant with the Funds Travel Rule since the Funds Travel Rule appears to utilise to regulated entities, rather than the underlying assets in which the entities trade."

This may, however, be too late to convince some exchanges who have already decided to play it prophylactic by delisting Monero and other privacy-coins to avoid potential scrutiny from regulators.