Ripple Partners with Coinfirm To Make XRP Compliant to FATF Regulations
- The Financial Action Task Force issued new policies, regarding the sharing of identifying information.
- Ripple will be offering a variation of these details through a collaboration with Coinfirm.
The Financial Action Task Force (FATF) makes the rules in the financial world, covering the cryptocurrency industry as well. About one week ago, the authority issued new requirements for cryptocurrency exchanges to share information, like the names of counterparties, which is a rule that the traditional banking system is already subjected to. Ripple will soon have their own spin on how they comply with these regulations, thanks to a partnership with Coinfirm, according to Forbes.
Ripple is the single largest owner of XRP, and they have already signed a deal with Coinfirm, which is a regulation tech startup. Coinfirm will be providing details about their cryptocurrency users, including details about whether their assets were processed through a “mixer,” which is a type of tech that helps launder the funds. Essentially, this mixer creates transactions that are taken from multiple counterparties, muddying the ability to see which amounts were sent from which parties.
The new information required by the FATF doesn’t actually include the identities associated with public addresses for cryptocurrency storage, according to Coinfirm CEO Pawel Kuskowski. Instead, it will include details that show if the address comes from an exchange that allows anonymous trading to take place, or if the account holder is registered in a high-risk county. Then, the address receives a grade for their risk level, ranging from 0 to 99.
There are 37 member countries covered within the FATF, and they have now been given a year to fall in line with these new policies. It is not mandatory to be a member country, which means that every involved nation will be able to release the requirements as they deem necessary.
The General Data Privacy Regulation (GDPR) was recently implemented for European nations, and it may keep the nations from legally accepting the information provided as part of FATF’s new policy. This would ultimately put the Coinfirm system and related systems at an advantage, according to Kuskowski, who was also the former head of global AML for the Royal Bank of Scotland.