Analytics company Elliptic has partnered with blockchain security firm CoolBitX in order to help crypto firms meet the demands of the Financial Action Task Force’s Travel Rule, Elliptic said in a press release on 21 July.
According to the announcement, both firms will be pooling their technologies in order to provide their solutions to firms, such as exchanges and Virtual Asset Service Providers (VASPs). The new package of services will address the Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) requirements of the FATF guidance, which was introduced in June 2019.
The CEO of CoolBitX, Michael Ou, said in a statement:
“The blockchain and cryptocurrency industry is at a major crossroad. As the Financial Action Task Force (FATF) continues to push its cryptocurrency guidance across the globe, compliance and preventing criminal activity can feel extremely daunting for VASPs.”
The new package will include tools such as CoolBitX’s Sygna Bridge, an API-based messaging service, which allows crypto firms to privately share data, as required by the FATF guidance. Elliptic’s on-chain analytic tools, which were designed to help companies comply with the AML and CFT requirements from FATF, will also be included in the new package.
Michael Ou also said:
“With the full range of tools from Sygna and Elliptic, we are thrilled to provide clients with the ability to protect themselves from violating any AML/CFT laws and regulations, allow them to assist regulators to combat illicit money laundering activities, and stay compliant with changing regulations.”
As per FATF’s Travel Rule, VASPs are required to record identifying data on senders and receivers of transactions over $1,000, and then share it with other VASPs. Earlier this month, digital wallet platform BitGo, which processes more than 20% of all global Bitcoin (BTC) transactions, announced that it will provide API support for the FATF Travel Rule.