Crypto.com to Utilize CipherTrace tool to comply with FATF’s travel rule

Crypto.com has selected CipherTrace’s specialized compliance tool to help it satisfy the complex requirements of the FATF’s industry-shaping”travel rule.”
Crypto.com, the creator of a cryptocurrency market, pocket, debit card software and crypto program, is strengthening its own compliance toolkit by executing a commercial alternative developed by crypto intelligence firm CipherTrace.CipherTrace’s tool, known as Traveler, takes its name from being made to meet up with the complex requirements of the Financial Action Task Force’s so-called”journey rule,” that came in force for Virtual Asset Service Providers, or VASPs, at 2020. The FATF’s traveling rule requires authorities and VASPs — including crypto exchanges, custody suppliers and OTC trading desks — to gather and discuss customer information during transactions. This approach broadly follows the needs currently set up for money transmitters in jurisdictions like the United States, which requires money transmitters to record identifying data on all parties involved with finance transfers made between financial institutions.What makes the journey rule particularly challenging for a variety of VASPs is that the unique local transpositions of the FATF’s guidelines in a variety of jurisdictions across the world. The solution, therefore, helps VASPs to discuss sensitive personal identifiable data to validate crypto trades and automatically identifies VASP-to-VASP transfers as well as the receiver VASP. The application also scans addresses associated with incoming crypto trades and supports the originating VASP. Additionally, it issues Know Your VASP electronic certificates. All this is the basis of an encrypted and exceptionally authenticated infrastructure for the sharing of sensitive data.Crypto.com’s Chief Compliance Officer Antonio Alvarez told Cointelegraph the firm had chosen the CipherTrace tool specifically:”To get a traveling rule tool to be useful, it needs broad acceptance, common standards and interoperability (along with other tools). CipherTrace’s Traveler is based on Trisa’s Alliance that aims to address many factors including interoperability. We are pleased to be the first platform to execute Traveler and anticipate working with CipherTrace and also our industry more widely to emphasise how compliance is handled.” At the beginning of 2020, CipherTrace’s main financial analyst John Jefferies stated,”Travel Rule authorities is simultaneously the largest milestone and also the largest setback for crypto. It has and will continue to induce a level of maturity which will allow the industry to grow into an institutionally accepted advantage class […] Additionally, it poses an existential danger for many exchanges and poses possible privacy issues for consumers. The Travel Rule compliance operations will be pricey much with open-source software like Trisa.”

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