To increase the transaction transparency platform against money laundering in the crypto space, Tether Operations Limited announced today that It will employ the services of Notabene’s Travel Rule technology.
Notabene is an all-in-one compliance platform that manages regulatory and counterparty risk in crypto and blockchain transactions.
Tether Operations Limited, the name behind the largest stablecoin Tether by market capitalization will begin testing the Notabene solution as a tool to curb money laundering and crime on cross-border transactions via Virtual Assets Service Providers (VASPs).
To be sure that customers’ funds are safe and secure, Tether is bringing Notabene’s protocol as an agnostic solution to the table. the integration will allow Tether to test complex cryptocurrency use cases in a less volatile environment.
Moreover, the new solution protocol will focus on transactions made on the VASPs by discreetly providing the other VASPs with important information about their customers.
Commenting on the integration, with Notabene “if successful,” and how the new development will foster transparency compliance on Tether’s digital platform, the CCO at Tether, Leonardo Real noted,
“Because the Travel Rule traditionally applies to financial institutions, we see this as an opportune moment to foster cooperation across traditional and digital channels in order to create better services for customers globally.”
Meanwhile, the Financial Action Task Force (FATF), the regulatory body for money laundering on a global level recently released guidelines for VASPs, which also applies to financial institutions.
Part of the FATF guidelines states that the ” Travel Rule” recommends that VASPs dealing with virtual assets should transmit specific customer data between counterparties for transactions over a certain threshold.
Tether has continued to soar in the crypto industry, enjoying 1st place despite issues involving assets backing surrounding adoptions and usage of the stablecoin.
At the time of publication, fresh data on CoinMarketCap reveals that Tether now has a total market capitalization of $69.7 billion, indicating that Tether remains the leading stablecoin by market cap.
Earlier today, Coinposters reported that the U.S. SEC has gained authority to regulate the $131 billion stablecoin market.