Skip to main content

Tether Trials Solution to Comply With FATF Travel Rule

http://motleybloggers.com/wp-content/uploads/2021/10/tether-trials-solution-to-comply-with-fatf-travel-rule.jpg

tether

Tether, the operator of one of the leading stablecoins in the crypto market has announced it will commence trials of a system that will allow the company to comply with the Financial Action Task Force (FATF) travel rule. The system, that is provided by Notabene, a company that offers ID and travel rule compliance solutions, will allow Tether to automatically communicate travel rule data between Virtual Asset Service Providers (VASPs).


Tether Eyes Compliance Solution


Tether, the company behind the issuance of the biggest stablecoin by market cap in the cryptocurrency market, USDT, will test trial a solution that will allow it to comply with the travel rule proposed by the Financial Action Task Force. The solution that will be tested, provided by Notabene, a software company that offers compliance solutions, will allow this information to be relayed between VASPs.


Tether’s actions are directed to thwart bad actors using USDT to move funds coming from illicit or going to illegal sources. This solution aims to make tether (USDT) more friendly to law enforcement agencies all around the world, and safer for users making transactions using Tether’s stablecoin.


Leonardo Real. CCO of Tether, declared:



It’s important that we work with other large VASPs to build this industry from the ground up. As pioneers of blockchain technology and leaders in transparency, we are dedicated to not only keeping up with new rules but helping shape them.




FATF’s Travel Rule


FATF’s travel rule, which was proposed to be implemented by VASPs as it is now enforced for traditional financial institutions, dictates that the information of both parties doing a transaction must be shared by the institutions facilitating it to help in case of money laundering or terrorists financing activities. However, the implementation of this rule in the cryptocurrency world has been difficult, due to the pseudonymous nature of the transactions.


This is why in the crypto world, approaches to comply with the travel rule sometimes use blockchain analytics and other systems to successfully deliver this data. Tether is not the only company that is seeking to heighten the level of vigilance on transactions made using its products. In July, Binance also implemented a similar system, provided by blockchain intelligence firm Ciphertrace, to comply with travel rule requirements, being one of the first exchanges doing it.


After successfully testing Notabene’s system, Tether aims to integrate this solution to have better oversight of transactions involving USDT. At the time of writing, Tether’s transparency page notes that there are approximately 70,687,988,377 tethers in circulation today.


What do you think about Tether testing a travel rule compliance solution? Tell us in the comments section below.




Origina post from
http://motleybloggers.com/tether-trials-solution-to-comply-with-fatf-travel-rule/

Comments

Post a Comment

Popular posts from this blog

P2P Bitcoin Traders in Nigeria Think Outside the Box in the Wake of CBN Restrictions

After the Central Bank of Nigeria issued a directive targeting the country’s cryptocurrency industry, bitcoin and altcoin trade volumes on centralized exchanges immediately plunged. Nevertheless, the new regulations seem to have succeeded in boosting crypto trade volumes on informal markets or on peer-to-peer trading platforms. Nigerian Crypto Traders Get Creative Still, the increasing trades on informal platforms have also led to increased reports of users losing money to con artists. Moreover, with the CBN seemingly eager to see volumes of crypto trades plummet, Nigerian users had to find ingenious but legal ways of getting around the central bank’s imposed restrictions. As shown in one local report , one such legal way is through an app created by one local crypto start-up, Patricia. According to the report, this application is already enabling Nigerian users to buy or sell their crypto assets securely and without running afoul of CBN regulations. Therefore, in this repor...
Post a Comment
Read more

A Jacobin Podcast Review: Critiques on Crypto and Sterlin’s Response

https://motleybloggers.com/wp-content/uploads/2022/01/a-jacobin-podcast-review-critiques-on-crypto-and-sterlins-response.jpg The following opinion editorial is a Jacobin Podcast review written by the author Sterlin Lujan , the chief risk officer with Cryptospace. The Jacobin Podcast episode called: “ Dig: Cryptocurrency w/ Edward Ongweso Jr & Jacob Silverman, ” touches upon “cryptocurrency, NFTs, Elon Musk, the metaverse, meme stocks, and techno-utopianism amid the crushing reality of our neoliberal hellscape.” Cryptocurrency isn’t fringe technology anymore. Over the last decade, it has become embedded into finance, culture, and even our social life. It’s drastically changing the way we think about money, economics, and human action. However, some people, primarily on the left, are skeptical of cryptocurrency. Many of them hate it, regardless of how much of a godsend it has been for many. My friend, thought leader, author, and psychedelic visionar...
Post a Comment
Read more

Bitcoin, Ethereum Technical Analysis: ETH Back Under $2,000 as Balenciaga Gains Lose Steam

https://motleybloggers.com/wp-content/uploads/2022/05/bitcoin-ethereum-technical-analysis-eth-back-under-2000-as-balenciaga-gains-lose-steam.jpg Following strong gains to start the week, BTC once again fell under $30,000, as crypto prices moved lower on Tuesday. The downturn follows up from yesterday’s rally, which came as Balenciaga announced it would be accepting crypto payments. ETH also dropped, falling under $2,000 today. Bitcoin Bitcoin fell under $30,000 on Tuesday, as bears returned to action following a green start to the week. Following a high of $30,547.50 during Monday’s session, BTC /USD fell to an intraday low of $28,975.56 earlier today. Today’s drop saw BTC fall by over 5% in the day, as bullish sentiment following the Balenciaga crypto announcement faded. BTC /USD – Daily Chart Since then, bears have now pushed prices closer to support at $28,800, which is an area where BTC has resided over the past few weeks. Looking at the chart, the 14-da...
Post a Comment
Read more