United States blockchain security firm CipherTrace has unveiled a framework for cryptocurrency exchanges and wallet providers to securely share customers’ information with zero data leakage in compliance to the Financial Action Task Force (FATF) global crypto regulation.
A top official of the cybersecurity startup revealed today said that the firm has finally launched the travel rule tool, Travel Rule Information Sharing Architecture (TRISA) published in its whitepaper for crypto-related firms to avoid data leakages, without breaching the FATF’s “travel rule.”
Commenting on the development, CipherTrace chief marketing officer, John Jefferies noted:
CiperTrace’s Travel Rule Information Sharing Architecture (TRISA) would allow exchanges and wallet providers to share payment details and confidentially exchange customer know-your-customer (KYC) information.
He added that since the FAFT introduced the travel rule, many crypto firms had stated that it would be near impossible for them to comply with it, but he stated that TRISA would make things easier for these firms.
According to reports in June, the FAFT recommended that “virtual asset service providers (VASPs)”, including crypto exchanges and wallet providers within the countries where it operates, should share information about their customers when initiating funds transfer to prevent money laundering and terrorism financing.
The FAFT rule would indirectly ensure crypto firms comply with the earlier established Know Your Customer (KYC) regulations.
Countries, where the FAFT operates, have already started taking the Travel Rule seriously and adding it into their national laws while giving these VASPs a timeframe to comply with the directive.
VASPs that choose to utilize the TRISA tool should ensure they have secure and reliable communications set up.
Additionally, the VASPs will be required to create an “extended validation know-your-VASP” certificate, which would be sent from the exchange where a transaction is being sent to the receiving exchange.
The certificate will be authenticated by a trusted third third-party while the recipient exchange would subsequently acknowledge receiving a transaction with a success receipt, or reject the transaction when the parties involved in the transaction are under any financial investigation.
CipherTrace continues to break new grounds as a leading blockchain security company and was recently added as a compliance partner in the new cryptocurrency exchange launched by Japanese e-commerce giant, RakutenNever miss out on our daily crypto news, stories, tips, and price analysis. Join us on Twitter | Telegram | Facebook or subscribe to our weekly Newsletter.