Tether trials solution for complying with FATF travel rules – Bitcoin News

Tether, one of the leading cryptocurrency operators in the crypto market, has announced that it will begin trial of a system that will allow the company to comply with the Financial Action Task Force (FATF) travel rules. The system, provided by Notabene, a company that provides solutions to comply with ID and travel rules, will allow Tether to automatically communicate travel rules data between virtual asset service providers (VASPs).

Tether Ice Compliance Solution

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

Tether’s actions are directed at failing bad actors using USDT to transfer funds from illegal or illicit sources. The solution aims to make Tether (USDT) more friendly to law enforcement agencies around the world and secure for users who transact using Tether’s stablecoin.

Leonardo Real. Tether’s CCO, announced:

It’s important that we work with other big VASPs so that we can build this industry from scratch. As a pioneer of blockchain technology and a leader in transparency, we are dedicated not only to adhering to new rules but also to helping shape them.

FATF’s travel rules

The FATF’s travel rules, which were proposed to be enforced by VASPs because they now apply to traditional financial institutions, indicate that transaction information from both parties must be shared between companies to assist in money laundering or terrorist financing. Activities However, the implementation of this rule in the cryptocurrency world has been difficult due to the pseudonymous nature of the transaction.

This is why in the crypto world, travel-compliant approaches sometimes successfully provide this data using blockchain analysis and other systems. Tether is not the only company that wants to raise awareness about transactions made using its products. In July, Binance also implemented a similar system, provided by blockchain intelligence firm Ciphertrace, to comply with travel regulation requirements, making it one of the first exchanges to do so.

After successfully testing Notabene’s system, Tether’s goal is to integrate this solution to better monitor transactions involving USDT. At the time of writing, the Teether Transparency page notes that there are currently approximately 70,687,988,377 Teaters in circulation.

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

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