Shyft Network To Help Top Crypto Exchange Binance Comply With FATF’s Travel Rule
The world's largest crypto exchange platform, Binance, has selected Shyft Network, the public blockchain protocol, to help with the implementation of the Financial Action Task Force's (FATF) requirements.
The Shyft Network was initially developed as a peer-to-peer solution for players within the cryptocurrency space to adhere to international compliance requirements within the stringent FATF ‘travel rule’.
Before Shyft, There was no Infrastructure in Place
Samuel Lin, the Chief Compliance Officer at Binance, stated that before the development of the Shyft platform, there was no other infrastructure that companies could use to fulfill the FATF's rules where it related to cryptocurrencies.
In 2019, the FATF published fresh guidance directed towards Virtual Asset Service Providers (VASPs) which will come into force by the end of June this year.
This new travel rule requires VASPs to conduct a thorough Know Your Customer (KYC) process and to share that information during transactions.
Former FATF executive, Rick McDonell, now Shyft’s top advisor, stated that the new deal will allow the crypto industry to evolve and interact more effectively with regulatory agencies.
McDonell also suggested that other exchanges should follow Binance’s lead in addressing compliance requirements, especially the FATF new travel rule.
Brave New World? What Shyft Aims to Accomplish
The Shyft Network aims to support crypto startups in adhering to an industry-wide solution to the FATF’s new requirements.
The firm is encouraging crypto businesses to utilize its suite of solutions like identity passporting, data attestation infrastructure as well as database bridging.
The network aims at leveraging decentralized networks in establishing a set of safe data sharing values which can be used in various jurisdictions.
The new deal comes just months after Binance became a victim of extortion through hacking, with the perpetrator successfully stealing a large portion of KYC data from the platform. The firm aims at addressing these limitations within the industry, and partnering with Shyft was the partnership to accomplish this.