BitGo Becomes First Major Wallet Platform To Support FATF Travel Rule
- The FATF Travel Rule will be implemented into all VASPs in the blockchain sector.
- The measure is meant to create a more secure crypto environment for custodial clients.
BitGo CEO Mike Belshe. CoinDesk
On July 14, BitGo, the digital asset company processing more than 20% of all global Bitcoin transactions, announced that it will provide API support for the Financial Action Task Force Travel Rule.
In January 2019, the FATF made an amendment to Recommendation 16 (also known as the “Travel Rule”) to include virtual assets and exchanges. Two years later, the blockchain community finally sees the first digital asset organization to implement it into their solutions.
Recommendation 16 is designed to prevent unlawful activities by being the lead global authority in Anti-Money Laundering (AML) and Combating-the-Funding-of-Terrorism (CFT) operations. In their last meeting, FATF decided on strengthening the global supervisory framework for crypto exchanges, urging VASPs to bring API support for the measure.
“We are currently building the technology that will send and receive travel data in order for BitGo to be compliant as a VASP for our custodial clients,” said Mike Belshe, CEO. He then explained that BitGo will offer the technology needed and, in the process, will assist their exchange clients with the new FATF standards for digital asset compliance.
According to BitGo, the company will do the “heavy lift” for ongoing Travel Rule compliance, as regulation evolves over time, and will provide seamless integration for clients so that they can continue to use the financial services without having to worry about future regulatory changes.
Senior product manager of BitGo, Chris Metcalfe, also expressed the company’s intention to provide proper regulatory solutions for users:
“We had to have a Travel Rule solution for our own trust clients because we are a regulated U.S. entity that is a VASP. So we had to build this tech or figure out how to source it, and since we are a tech provider we built it ourselves and can now offer Travel-Rule-as-a-service to our exchange clients.”
In the official statement, the company announced the extending of transaction API standpoints to accept additional travel data. By doing so, BitGo will provide compliant services to its custodial clients while working together with them in creating a more regulated and secure crypto ecosystem.
- One of the largest South Korean commercial banks, KEB Hana Bank, partnered with crypto custodian BitGo in order to set up a new crypto custody venture in the country.
- The new venture, which will use BitGo’s crypto security expertise and Hana’s experience in financial services and compliance, is expected to launch in the second half of 2024.
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- The crypto custodian is seeking more than $100 million in damages from Galaxy Digital for the “intentional breach” of its $1.2 billion acquisition deal.
- BitGo noted the complaint was filed under seal as to give Galaxy Digital the opportunity to redact “some of the allegations before the complaint becomes public”.
- Mike Novogratz’s crypto investment company said it was terminating the acquisition deal as BitGo failed to provide audited financial statements for 2021.
- Galaxy Digital is still looking to go public through a NASDAQ listing, and is currently awaiting approval from the SEC to reorganize as a Delaware-based company.