BitGo Launches FATF Travel Rule Compliance Product, Rallying Other VASPs to Adopt
BitGo, a San Francisco domiciled crypto custodian, is extending its API's for clients to append their data in line with the FATF ‘Travel Rule.' This set of regulations came into action back in 2019 under recommendation 16, requiring all Virtual Asset Service Providers (VASP) to comply with the guidelines.
Most notably is the aspect of data traveling whereby any amount above $1,000 sent via the crypto ecosystem has to go along with the sender's data. BitGo's internal APIs now seek to make this more practical, with the firm being optimistic about mainstream adoption by other VASPS as well. Mike Belshe, the CEO, of BitGo, has since confirmed the firm's potential in scaling this milestone to other projects:
“We can offer this technology to our exchange clients and, in the process, assist them with the new FATF standards for digital asset compliance.”
BitGo's API Travel Rule Solution
This innovation is expected to enhance the compliance of BitGo as a VASP while recording originator and beneficiary data as stipulated by the FATF Travel Rule.
It has already started working within BitGo's ecosystem; the platform users have since been asked to check out the new API feature to be able to submit additional information during transaction requests in the network. The company's senior product manager, Chris Metcalfe, noted that the process should be seamless given prior experience with API tools:
“The integration effort required by our clients is relatively light, as they simply need to append slightly more information about the sender in the transaction requests they are already making.”
To support communication between VASP providers, BitGo's API has been upgraded to accommodate a subset of InterVASP’s IVMS101 standard. In doing so, BitGo is optimistic about acquiring a more significant market as the FATF crackdown looms. According to Metcalfe, this is possible given BitGo's value proposition in the crypto ecosystem:
“So, BitGo, being the wallet platform to many of these large exchanges, has a good reason to believe we are going to be a source of gravity.”
Other than the VASP Travel Rule solution, BitGo has been working together with prominent banks like Standard Chartered and ING in developing a bank-backed Travel Rule Protocol (TRP).
“We are working towards an MVP (minimum viable product) with the TRP, as well as the U.S. Travel Rule working group, so we kind of have our toes in two ponds, and intend to play in both of those networks,” highlighted Metcalfe.