Nekti Upgrades Its Digital ID Service To Assist Crypto Ventures Adhere To FATF’s New Rules
On Monday, Netki announced it has completed upgrading its digital ID services in order to assist crypto-based companies to adhere to the stringent global rules and guidelines set to combat money laundering.
According to CoinDesk, the TransactID has been upgraded to include two fresh features like the capability to break down certificates of an individual’s identity into lesser pieces of personally identifiable information (PII). The other feature is the capability for both senders as well as receivers of funds to ask PII from one another.
Netki CEO, Justin Newton, explained that prior to the upgrade there was a single big atomic transaction where information was shared on each other on both ends. He added that with the new features, the new protocol will be much more of a conversation and each side will be able to ask and share personal pieces of identification with one other.
The new features comes after Financial Action Task Force (FATF) released new guidelines in June that require virtual asset service providers (VASPs) that comprise of crypto exchanges, to share information on their clients with each other during the transfer of money in order to make sure the law enforcement agencies can have an information trail.
Although FATF guidelines are not binding, about 37 members of the outfit are anticipating to enforce them through legislation in the next 12 months.
Even before the implementation of the FATF’s standards, some countries are already taking measures to crack down on fraud and financing of illegal activities using cryptos. For instance, U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) recently said that the travel rule now applies to crypto exchanges like other financial institutions.
While TransactID was developed for use in the US, the recommendations by the FATF to apply the travel rule even on cryptocurrencies, means that Netki had to go back to the drawing board and come up with a product which can be customized to fit to a country’s interpretation of the standards.