Monday, July 15

Protocol Interoperability is Still Very Young Today

The implementation of interoperability has been slow, despite a few press releases and announcements. To ensure that Travel Rule solutions are interoperable, FATF has recently urged cooperation between regulators and private sector organizations.

Interoperability between Travel Rule messaging protocols is not yet universal, but FATF does not consider a lack of interoperability a reason to not comply. While there are working solutions in production, FATF urges countries to implement the Travel Rule as well as robust control measures to interact with VASPs in jurisdictions with no Travel Rule or no working solutions in place. It is also possible to maintain the continuity of operations if Travel Rule solutions are implemented early when local regulatory implementation deadlines are imposed. This solution should be implemented sooner rather than later by VASPs.

To ensure the interoperability of Travel Rule solutions adopted by VASPs, FATF guidance emphasizes the need for cooperation and coordination among supervisory authorities and private sector organizations. The Travel Rule must also be effectively implemented globally through collaboration and coordination.

Scalable Compliance with Frictionless Processes

VASPs can identify transactions that meet rule requirements without compromising user experience. It sends an API call to KYT in response to detecting a Travel Rule scenario to determine whether the wallet is hosted or unhosted and to identify the counterparty VASP. This data can be used in conjunction with real-time verified information about the VASP for conducting due diligence and taking the appropriate next steps to maintain compliance. In one dashboard, It supports every VASP protocol, so users can transact with any VASP.

In addition to automating transactions with trusted counterparties, our integrated solution provides cryptocurrency businesses with the data they need to detect suspicious activity and comply with regulatory requirements, including:

Identification of Wallets

  • With the help of a widget and API, you can collect the necessary Travel Rule data.
  • Verify Bitcoin wallet ownership for non-custodial accounts.
  • Detect potentially high-risk transactions automatically and get alerts on them.

Due Diligence for Counterparty VASPs

  • To perform informed decisions quickly, you need reliable and current VASP information.
  • In addition to licensing and incorporation processes, VASP data also includes AML/CFT information. 

Support for Multiple Protocols

  • TR Now supports multiple protocols for transacting with VASPs.
  • The API dashboard makes it easy to manage transfers across all protocols.
  • Data encryption and segregation for customers.

Using Automated Transfers

Utilize tools for rule-setting to customize, preset, and automate transfer requests.

Cryptocurrency businesses can signal Travel Rule compliance immediately, gaining a competitive advantage with regulators.

In the event that other VASPs weren’t compliant, they might have to stop doing business with counterparties. Your customers and partners will be more confident to work with you if you meet cryptocurrency Travel Rule requirements now, allowing you to open up new opportunities and gain an edge in the market.