Major US Crypto Exchanges to Develop Customer Data Exchange Solution Compliant with FATF Rules
Posted on 07-21-2020.
American cryptocurrency exchanges have formed a working group that aims to develop a user data exchange solution compliant with the relevant Financial Action Task Force (FATF) rules.
San Francisco-based crypto exchange Coinbase appeared to be the initiator of the development. The working group will also include major American regulated digital currency exchanges such as Gemini, Kraken, and Bittrex, industry-focused media outlet The Block reported on July 20. The solution is intended to increase the level of compliance with the so-called "Travel Rule."
A peer-2-peer “bulletin board”
The launch of the project was announced by Jeff Horowitz, chief compliance officer at Coinbase, during an online conference. The working group will release a white paper detailing a proposed method to comply with the FATF rules within a few weeks. Representatives of Gemini and Bittrex confirmed their participation in the initiative.
Horowitz noted that information will be exchanged via a peer-2-peer (P2P) “bulletin board.” Participants will be able to request information about any wallet in order to establish the identity of the owner. In the future, the working group will consider adding new members outside the United States to the system.
In May, crypto-industry stakeholders presented a new messaging standard for data exchange by virtual asset service providers alongside crypto transactions.
Last week, it was revealed
that the U.S. Internal Revenue Service will use Coinbase's analytics platform to track transactions. Recently, Coinbase also began providing its analytics software to the U.S. Secret Service that carries out the integrated missions of protection and investigations.