CipherTrace To Engage In Helping Remedy FATF Compliance Issues
One of the questions that are important in the crypto world right now is how to share information about customers by following international guidelines properly. CipherTrace, according to its recent white paper, may have the answer for that.
The latest version of the company’s white paper explains how wallet providers and crypto exchanges can comply with the rules created by the Financial Action Task Force (FATF) and its infamous travel rule. The FATF requires companies to pass each other information about customers when they transfer crypto, a move that is not very popular in the crypto world.
There are several concerns about how people will have their data safe while the companies exchange it. Also, it was seen by many companies as something that will be very onerous to do. Because of this, CipherTrace wants to provide some solutions to the industry.
The company’s CMO John Jefferies affirmed that it is virtually impossible to adhere to the so-called travel rule right now, the industry is only lacking the right solution. With a new system provided by the company, different companies could share payment and KYC details without having to engage in any difficult effort.
Jefferies also affirmed that the system does not require a lot of computing power, so the exchanges and wallets will not have problems setting up the system. Also, it is a fully confidential system, so nobody outside of the two parties will ever know what information is being exchanged.
In the U. S., the Financial Crimes Enforcement Network (FinCEN) has already gave until the end of November for companies to share information, so exchanges and wallets will certainly need to comply. The FATF has guidelines, but the FinCEN enforces laws. CipherTrace wants to be prepared for this new demand.