Tether trials Notabene’s new travel rule technology to combat financial crimes

Tether Operations Limited, the firm operating the Tether (USDT)-centric platform tether.to, announced today that it will use Notabene, an end-to-end solution for cryptocurrency Travel Rule compliance.

Tether will begin testing Notabene’s cross-border transaction monitoring system for virtual asset service providers (VASPs) to combat financial crimes such as money laundering.

Notabene is a new technology for monitoring cryptocurrency transactions in real-time, making the blockchain more transparent and allowing regulators to keep better track of cash flow.

The Know Your Customer infrastructure stack at the firm is built to span jurisdictions with little or no regulation of financial services.

Notabene claims to offer a low-risk environment to test sophisticated crypto use cases. Tether will use Notabene’s technology to determine if it can securely transmit identifying data for clients in other VASPs. In particular, as it pertains to transactions conducted by VASPs, Notabene’s solution will help Tether protect its consumers. 

The Financial Action Task Force (FATF), a worldwide group that sets Anti-Money Laundering standards, has determined that VASPS should adhere to the same rules as regulated financial institutions. The “Travel Rule” advises VASPs to exchange specific client information between counterparties for transactions worth more than a certain amount.

These procedures are meant to assist nations and service providers in preventing money laundering, terrorist financing, and complying with sanctions laws. Commenting on the new development, Tether’s CCO Leonardo Real stressed the importance of working with other VASPs, stating:

“As pioneers of blockchain technology and leaders in transparency, we are dedicated to not only keeping up with new rules but helping shape them. Because the Travel Rule traditionally applies to financial institutions, we see this as an opportune moment to foster cooperation across traditional and digital channels in order to create better services for customers globally. We are proud to lead the charge.”

According to a recent report from Cointelegraph, the SEC will be in charge of U.S. stablecoin regulation and enforcement. In 2021, the stablecoin market has seen tremendous development, and Tether’s market capitalization has soared this year, increasing by 229% since the start of the year to $69.6 billion.

Blockchain

Articles You May Like

Buying FTSE China A50 index (XIN9) on the monthly chart
Nasdaq fills the gap (well almost) and bounces off 38.2% retracement on the first look
NZD/USD Price Analysis: Pair gave up and lost the 0.6070 vital area
How would the bond and FX markets react to Biden dropping out of the race?
Gold Price Today: Yellow metal, silver open flat after sharp declines post Budget pinch

Leave a Reply

Your email address will not be published. Required fields are marked *