Tether Operations Limited, which operates the Tether (USDT-centric platform tether.to), announced today that it will be using Notabene, an end to end solution for compliance with the cryptocurrency Travel Rule.
Tether will start testing Notabene’s cross-border transaction monitor system for virtual assets service providers (VASPs). This is to help combat financial crimes like money laundering.
Notabene, a new technology that monitors cryptocurrency transactions in real time, makes the blockchain more transparent and allows regulators to better track cash flow.
The firm’s Know Your Customer infrastructure stack is designed to be used in jurisdictions that have little or no financial services regulation.
In order to assist cryptocurrency exchanges, digital wallet providers, and financial institutions with the new FATF Travel Rule requirement, #Tether will begin testing the Notabene platform.https://t.co/9gUpq15As6
— Tether (@Tether_to), October 26, 2021
Notabene claims it offers a low-risk environment for sophisticated crypto use cases. Tether will use Notabene’s technology to test whether it can securely send identifying data for clients using other VASPs. Tether will be able to protect its customers, especially in relation to transactions that are conducted through VASPs.
VASPS must follow the same rules as financial institutions that are regulated by the Financial Action Task Force (FATF). This is a global group that establishes Anti-Money Laundering Standards. The “Travel Rule” instructs VASPs that they should exchange client information with counterparties in order to facilitate transactions exceeding a certain value.
These procedures are intended to aid nations and service providers in the prevention of money laundering, terrorist financing, compliance with sanctions laws, and assist them in complying with them. Leonardo Real, Tether’s Chief Commercial Officer, commented on the development and stated:
“We are pioneers in blockchain technology and leaders of transparency. We want to help shape new rules. We see the Travel Rule as an opportunity to encourage cooperation between traditional and digital channels to provide better services to customers worldwide, since it traditionally applies to financial institutions. We are proud to be at the forefront of this effort.
Cointelegraph recently reported that the SEC would be responsible for U.S. stabilitycoin regulation enforcement. Tether’s market cap has increased by 229% to $69.6 billion since the beginning of the year. This is a significant development for the stablecoin market.