Cryptocurrency exchange Bitfinex is testing a new analogy tool AML

28.10.2021

The Notabene Travel Rule regulation, introduced into industrial use in 2020, currently processes transactions among fifty virtual currency exchanges. Bitfinex plans to test a new anti-money laundering tool, AML, on its own site.

On Wednesday, the organization made a statement about testing a new regulation designed to follow the “travel rule”, the Anti-Money Laundering and Gangster Sponsoring Act for Money Companies, which was introduced by the Anti-Money Laundering Economic Action Task Force (FATF) in 2019.

Bitfinex has merged with Notabene, a startup law enforcement company, to implement its software as a service for identifying digital currency accounts, monitoring cross-border transactions, and fulfilling other broad responsibilities of counterparties providing a digital currency service (VASP). It is understood that the merger will allow the company to maintain secrecy in the process of accumulating and managing information related to the "travel rules".

According to the statement, the regulation allows Bitfinex to exchange, send and receive supplier data in conjunction with blockchain operations to various suppliers using the same mechanism. Bitfinex's subsidiary, Tezer, which operates the world's largest stablecoin, Tezer (USDT), has also enforced the Notabene ruling.

Peter Warrack, Head of Commitment at Bitfinex, stated that Bitfinex has "always been given a leadership role in following the changing broad legal rules."

Notabene CEO Pelle Brundgaard said the firm gave impetus to its Travel Rule decree at the end of summer 2020. To date, the service processes transactions with at least 50 different exchanges, including Paxful, Luno, Bitso, Onchain Customer and others.

Notabene has been experimenting in various jurisdictions, including a test program with the Abu Dhabi Global Market Monetary Regulatory Authority in early October.

Brundgaard added that following the “travel rules” is gaining momentum every three months, and the firm plans to have basic VASPs introduced during the first half of 2022.

 

Since the release of the “travel rules” for digital currency two years earlier, the FATF has continued to work on the mechanism to improve and adapt it to the growing digital money industry. The FATF noted the increased urgency of global organizations to introduce travel rules within the boundaries of the new leaders for the 28 October VASP.

In February, the institution issued a summary act to adapt its leaders to the Travel Rules for Stablecoins and Peer-to-Peer Digital Money.