Leading crypto exchanges will release whitepapers in August that will detail a collaborative approach towards complying with the FATF Travel Rule. It has now been one year since this rule came into action with a recent review to assess progress on compliance. While it emerged that most Virtual Asset Service Providers (VASPs) have yet to fulfill its requirements, this might soon change according to Coinbase's CCO, Jeff Horowitz.
Speaking at the Global Finance Event last week, Horowitz confirmed that a project was indeed underway to ease the burden of compliance brought about by FATF guidelines. The anticipated whitepaper will introduce a framework that crypto exchanges can rely on to share data via P2P networks in a transparent manner. It will also highlight the ‘bulletin board' which will be fundamental in the whole data sharing processes.
The board will allow network participants to share information such as addresses through a claim of the data by one of the parties. In doing so, the working group is optimistic that the participants will be able to share data via P2P networks as well as prevent hackers from compromising the ecosystem. Crypto news site, TheBlock, has since reported that other exchanges, including Bittrex, Kraken, and Gemini, are part of the group working on a solution to the FATF Travel Rule compliance.
Other Travel Rule Compliance Initiatives
The Travel Rule, which essentially requires any amount above $1,000 to travel along with the sender's data, has undoubtedly put VASPs on toes to come up with cost-efficient solutions.
On this note, BitGo recently launched a Travel Rule compliance product through an extension of its internal APIs. The exchange's clients have since been asked to provide additional information so that BitGo can, in turn, report this under the FATF guidelines as well as share the information with other VASP providers.
To make this possible, BitGo further upgraded its API's to be compatible with the IVMS101 standard also launched to harmonize communication between VASPs for better compliance of the Travel Rule.