CoolBitX Partnering with Elliptic to Address FATFâ€™s Travel Rule
CEO Michael Ou says Ellipticâ€™s wallet screening tools with CoolBitXâ€™s Sygna Bridge could help firms comply with the FATF travel rule.
FinTech company CoolBitX may have a solution for countries that have not yet complied with the Financial Action Task Forceâ€™s â€œtravel ruleâ€�.Â
According to a statement from CoolBitX shared with Cointelegraph on July 21, the blockchain security company announced it would be partnering with cryptocurrency forensics firm Elliptic to address anti-money laundering (AML) regulations for virtual asset service providers (VASPs) in accordance with the Financial Action Task Force (FATF) travel rule.Â
VASPs will have access to both Sygna Bridge â€” the solution proffered by CoolBitX â€” and Ellipticâ€™s crypto transaction and wallet screening tools to comply with the travel ruleâ€™s AML guidelines.
â€œAs the Financial Action Task Force continues to push its cryptocurrency guidance across the globe, compliance and preventing criminal activity can feel extremely daunting for VASPs,â€� said Michael Ou, CEO of CoolBitX. â€œWith the full range of tools from Sygna and Elliptic, we are thrilled to provide clients with the ability to protect themselves from violating any AML/CFT laws and regulations, allow them to assist regulators to combat illicit money laundering activities, and stay compliant with changing regulations.â€�
One year after introduction of â€˜travel ruleâ€™
The FATF introduced a set of guidelines in June 2019 intended for crypto-related firms to prevent criminal misuse of virtual assets with AML, Know Your Customer (KYC), and Combating the Financing of Terrorism (CFT) measures. These requirements came to be known as the â€œtravel rule.â€�
The group said it would â€œmonitor implementation of the new requirements by countries and service providers and conduct a 12-month review in June 2020.â€�
Singapore and Korea leading, says Ou
After one year from FATFâ€™s guideline announcement, many countries are still working to adapt to the FATF requirements.Â
Ou told Cointelegraph in May that in his opinion Singapore and South Korea had some of the best regulatory oversight for compliance with the travel rule. The two nations have already set deadlines for VASPs to meet FATF guidelines. Regulations like Singaporeâ€™s Payment Services Act and South Koreaâ€™s amendments to its Act on Reporting and Using Specified Financial Transaction Information have given both countries a good start.
According to a FATF report published on July 7, the group has scheduled another 12-review for June 2021.
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