Elliptic And CooBitX Addresses FATF’s Travel Rule Through Partnership

CoolBitX, a fintech company, may start offering a solution for various countries that have yet to comply with the “travel rule” that the Financial Action Task Force (FATF) has mandated in regards to crypto.

Joining Forces For Complete Solutions

CoolBitX shared a statement with CoinTelegraph on the 21st of July, 2020. In this statement, the blockchain security firm announced a partnership with Elliptic, a crypto forensics firm, in order to address the anti-money laundering (AML) regulations that the FATF has mandated in its travel rule. Particularly, these regulations pertain to virtual asset service providers or VASPs.

Through this partnership, VASPs will be capable of accessing both the crypto transaction and wallet screening tools Elliptic offers, as well as Sygna Bridge, a solution provided by CoolBitX. With both these services, it’s expected that VASPs will be capable of complying with the FATF’s AML guidelines, as per the travel rule.

Trying To Help In Changing Regulations

Micheal Ou stands as the CEO of CoolBitX, and gave a statement about the matter at large. He explained that the FATF is continuing to push the world at large to comply with its guidance. This, Ou said, can lead to nervousness with VASPs, as the pressure of complying and preventing criminal activity in an unprepared environment can be daunting. Ou explained that with Elliptic and Sygna working together, the full range of tools the two firms provide would allow their clients to prevent the possible violation of any AML/CFT regulation or law. This, Ou said, would enable them to aid the relevant regulators in order to combat illegal money laundering, and not be as affected as regulations change to fit with the FATF.

It was back in June of 2019 when the FATF introduced its guidelines aimed at crypto firms. These guidelines were developed to prevent the criminal misuse of virtual assets, introducing Know Your Customer (KYC) as well as Combating the Financing of Terrorism (CFT) measures alongside AML. As these requirements were put forward, it became referred to as the “Travel Rule.”

South Korea And Singapore Believed To Be Compliance Leaders

It’s been a year since the FATF had introduced its guidelines, and the FATF itself has concluded that many countries are still working to adapt to its requirements.

In his statement with Cointelegraph, which occurred in May, Ou stated that he’s convinced that South Korea and Singapore are currently the ones with the best regulatory oversight. At least, in regards to the Travel Rule. South Korea achieved this via amendments on its Act on Reporting and Using Specified Financial Transaction Information, while Singapore introduced the Payment Services Act. Both these measures gave the countries a good start.