Custodial platform BitGo is going to launch a streamlined, opt-in solution to comply with the Travel Rule regulation suggested by the FATF. It will start functioning in April 2020.
BitGo has announced it is ready to protect its customers from the potential impact of the Travel Rule. Thus, it released a specialized solution.
“This solution will minimize workflow changes and allow exchanges and other clients to continue leveraging BitGo’s robust, cross-blockchain API platform by simply adding well-defined parameters when sending funds. We are targeting April 2020 to complete the implementation. This will put us ahead of the June 2020 deadline and give our clients time as well.” the company advises in its blog.
Currently, BitGo is processing 20% of all Bitcoin transactions.
About Travel Rule
The Financial Action Task Force (FATF) is an intergovernmental organization that develops global standards against money laundering and terrorism financing.
It was established in 1989 by the decision of the G7 countries. Its members include 35 countries and 2 organizations.
It also assesses compliance with national AML / CFT legislation. On June 21 it issued its recommendation known as Travel Rule. According to it, all transactions exceeding $1,000 must contain details of both the sender and the beneficiary. The new rule demands VASPs (virtual asset service providers) to collect information about their clients. It also refers to crypto exchanges as wallet providers. The goal is to stop money laundering and other illegal activity while digital assets transfer.
At the moment, there is no global consensus that would regulate cryptocurrency transactions worldwide. Exchanges in different countries work according to different legislation. And a clear mechanism for crypto regulation is still to be developed.
At the same time, the FATF asks the exchanges for a report by June 2020 to check on progress.
In October, Altcoin Buzz reported about Binance’s steps toward compliance with the FATF regulations.
