Tether Operations Limited, the company that operates the Tether Centric Platform (USDT) tether.to, today announced that it will use Notabene, an end-to-end solution for cryptocurrency travel rule compliance.
Tether will begin testing Notabene’s cross-border transaction monitoring system for virtual asset service providers (VASPs) to combat financial crimes such as money laundering.
Notabene is a new technology to monitor cryptocurrency transactions in real time, making the blockchain more transparent and allowing regulators to better track cash flow.
The company’s Know Your Customer infrastructure stack is designed to cover jurisdictions with little or no financial services regulation.
In order to help cryptocurrency exchanges, digital wallet providers and financial institutions with the new FATF travel rule requirement, #Attached will start testing the Notabene platform.⬇️https: //t.co/9gUpq15As6
– Tether (@Tether_to) October 26, 2021
Notabene claims to provide a low-risk environment for testing sophisticated crypto use cases. Tether will use Notabene’s technology to determine if it can securely transmit credentials for customers in other VASPs. In particular, when it comes to transactions made by VASPs, Notabene’s solution will help Tether protect its consumers.
The Financial Action Task Force (FATF), a global group that sets anti-money laundering standards, has determined that VASPS should adhere to the same rules as regulated financial institutions. The “Travel Rule” advises VASPs to exchange specific customer information between counterparties for transactions with a value greater than a certain amount.
These procedures are intended to help countries and service providers prevent money laundering, terrorist financing and comply with sanctions laws. Commenting on the new development, Tether CCO Leonardo Real stressed the importance of working with other VASPs, saying:
“As pioneers in blockchain technology and leaders in transparency, we are committed not only to following the new rules, but also to shaping them. Because the travel rule traditionally applies to financial institutions, we see this as an opportune time to foster cooperation between traditional and digital channels to create better services for customers around the world. We are proud to lead the charge.
According to a recent TBEN report, the SEC will be in charge of regulating and enforcing stable currency in the United States. In 2021, the stablecoins market saw tremendous development and Tether’s market capitalization has skyrocketed this year, increasing 229% year-to-date to $ 69.6 billion.