Notabene’s Travel Rule solution was launched in production in 2020. Currently, it processes transactions among 50 cryptocurrency exchanges. In that context, Bitfinex crypto exchange is preparing to test the Anti-Money Laundering (AML) tool on its platform.
The company announced on October 27 that it will be testing a new solution designed for complying with the “Travel Rule,”. This tool is an AML and Counter Financing of Terrorism regulation for financial institutions that were introduced by the Financial Action Task Force (FATF) in 2019.
Bitfinex partnered with Notabene compliance startup to install its software-as-a-service (SaaS) solution to track cross-border transactions, identify digital asset accounts, and comply with other major obligations of virtual asset service providers (VASP). This partnership will allegedly enable the company to guarantee privacy while collecting and managing Travel Rule-related data.
Based on the announcement, this solution enables Bitfinex to share, send, and receive counterparty information together with blockchain transactions to any counterparties using the same network. Tether, Bitfinex’s sister company, which operated the world’s biggest stablecoin, Tether (USDT), has also started using Notabenes solution.Buy Bitcoin Now
The chief technology officer of Bitfinex and Tether, Paolo Ardoino, stated that Bitfinex has:
“always taken a leading role in meeting new global regulatory requirements.”
Pelle Brændgaard, Notabene CEO, said that the company had introduced its Travel Rule solution in August last year. This service is now processing transactions among at least 50 different exchanges like Bitso, OnChain Custodian, Luno, Paxful, and several others.
Bitfinex Partner With Notabene
For now, Notabene has been running tests across multiple jurisdictions, including a pilot with the Financial Services Regulatory Authority of Abu Dhabi Global Market earlier this month. Brændgaard said:
“With this updated Guidance, FATF is increasing the urgency yet also acknowledging the real-world issues VASPs and Travel Rule service providers like us have pointed out to them over the last year. They are now recommending that regulators be flexible during the initial rollout.”
Brændgaard said that Travel Rule compliance has been growing quickly every quarter, and the company expects major VASPs to have complied by the first or even second quarter of 2022.
Since unleashing the crypto Travel Rule over two years ago, the FATF has continued to work on the infrastructure to enhance it and fit the thriving crypto sector. In February 2021, the authority issued a review document to adapt its Travel Rule guidance for stablecoins and cryptocurrency peer-to-peer transactions.