Veriscope will continue to offer a plethora of cryptocurrency exchanges following an “extensive” testing period with the Financial Action Task Force (FATF) Travel Rule.
As a result of the Travel Rule compliance test, Veriscope will provide Huobi, Binance, Gate.io, Moonpay, Deribit, Tether, Bitfinex, and other crypto exchanges, to its platform whilst protecting its customers’ privacy.
Malcolm Wright, Veriscope Lead and Head of Strategy for Global Regulatory & Compliance Solutions at Shyft Core, commented: “This is a historic leap forward in the way cryptocurrency exchanges and financial institutions can communicate, trust each other and push the industry forward towards mass adoption.
“Particularly at this time, we believe adoption of the Travel Rule is essential, and Veriscope offers a unique, rapid, and future-proof way of doing this. Historically, compliance has been seen as a costly and arduous process. Veriscope changes that through a seamless workflow that instils confidence in customers and regulators alike.”
Issued by the FATF, the Travel Rule aims to strengthen the protective walls against international finance fraud such as money laundering and other malicious activities. This is done through a set of requirements for the collection and exchange of customer data between companies to ensure adherence to anti-money laundering (AML) standards.
Veriscope provides Travel Rule adherence by protecting customer data through a peer-to-peer data connection without storing personally identifiable information (PII). It also uses encrypted communication, in addition to being fully GDPR-compliant.
Built on the Shyft Network blockchain, Veriscope is also capable of supplying an open on-chain audit trail of transaction requests.
Furthermore, Shyft and Veriscope also provide a solution to the previous problem where virtual asset service providers (VASPs) from a region where the Travel Rule has been put into effect could not process compliant transactions with other VASPs that operate in a jurisdiction where the rule is absent.
Joseph Weinberg, Co-Founder of the Shyft Network, said: “The mainnet launch of Veriscope means that millions of crypto users can trust that the exchanges they use are protecting their data, and when they are required to share data with counterparties, that they are doing so in the most compliant and secure way possible.
“It also allows exchanges to feel confident that they can comply with the travel rule and continue to serve their customers.”