Cryptocurrency exchange Bitfinex is preparing to test a new anti-money laundering (AML) tool on its platform.
The company Announce On Wednesday, it will test a new solution aimed at complying with “travel rules,” an anti-money laundering/counter-terrorism financing regulation for financial institutions Launched by the Financial Action Task Force (FATF) In 2019.
Bitfinex has partnered with compliance startup Notabene to implement its software-as-a-service solution to identify virtual asset accounts, track cross-border transactions, and comply with other broad obligations of virtual asset service providers (VASP). Allegedly, the integration will allow the company to collect and manage Travel Rule-related data while ensuring privacy.
According to the announcement, the solution allows Bitfinex to share, send and receive counterparty information and blockchain transactions with any counterparty using the same infrastructure. Bitfinex’s sister company, Tether, operates the world’s largest stablecoin Tether (USDT), also started Solution using Notabene.
Paul Adoino CTO of Bitfinex and Tether, Stating that Bitfinex “has been playing a leading role in meeting new global regulatory requirements.”
Notabene CEO Pelle Braendgaard told Cointelegraph that the company launched its travel rules solution in August 2020. The service is currently processing transactions between at least 50 different exchanges, including Paxful, Luno, BitSo, OnChain Custodian, etc.
Notabene has been tested in multiple jurisdictions, including pilot Cooperated with Abu Dhabi Global Market Financial Services Regulatory Authority in early October.
“With this updated guideline, the FATF is increasing its urgency, but it also acknowledges the real problems that VASP and travel rules service providers like us pointed out to them last year. They now recommend that regulators remain flexible when they are initially introduced,” Braendgaard Say.
Braendgaard added that Travel Rule compliance is growing rapidly every quarter, and the company expects major VASPs to be compliant by the first or second quarter of 2022.
Since the release of the cryptocurrency travel rules more than two years ago, FATF has continued to work on the improvement of the framework to adapt to the growing cryptocurrency industry. In February, the authorities Issue review documents Adjusted its travel rules guidelines for stablecoin and encrypted peer-to-peer transactions.