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

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

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Tether Operations Limited, the company that runs Tether (USDT), said on Tuesday that it will adopt Notabene, an end-to-end cryptocurrency Travel Rule compliance solution.

In order to tackle financial crimes including money laundering, Tether will begin testing Notabene’s cross-border transaction monitoring technology for virtual asset service providers (VASP).

Furthermore, Notabene is a new system that allows authorities to monitor bitcoin transactions in real-time. Making the blockchain more visible and allowing them to better manage cash flow.

The firm’s Know Your Customer infrastructure stack is designed to transcend jurisdictions with minimal or no financial services regulation.

Risk-free environment

Notabene claims to provide a risk-free environment for testing advanced crypto application cases. Thus, Tether will test if it can securely transmit identifying data for clients in other VASPs using Notabene’s technology. Notabene’s technology, in particular, will assist Tether secure its customers when it comes to VASP transactions.

VASPs should follow the same criteria as authorised financial institutions, according to the Financial Action Task Force, a global organisation that sets anti-money laundering guidelines. For transactions valued more beyond a particular amount, the “Travel Rule” urges VASPs to provide sensitive customer information between counterparties.

These methods originally designed to help countries and service providers avoid money laundering, terrorist funding, and compliance with sanctions legislation. Tether’s chief compliance officer, Leonardo Real, commented on the latest development, emphasising the necessity of collaborating with other VASPs, saying:

“As pioneers of blockchain technology and transparency leaders, we are committed to not only following but also shaping new norms”. Because the Travel Rule has historically applied to financial institutions, we believe this is an excellent opportunity to develop collaboration across conventional and digital channels in order to provide better services to clients throughout the world. It is an honour for us to take the lead.”

The US Securities and Exchange Commission will be in charge of stablecoin regulation and enforcement, according to a recent article. The stablecoin market has grown dramatically in 2021, with Tether’s market value jumping by 229% to $69.6 billion since the beginning of the year.

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