A blockchain analysis firm named CipherTrace has recently partnered with the blockchain attestation and identity platform Shyft to help cryptocurrency exchanges abide by the task force’s latest dictates from the G20.
The latest cryptocurrency news show that a specter is haunting today’s crypto economy and it is the one of the “Travel Rule” which has been pushed forth to apply to cryptocurrency exchanges by the Group of 20’s Financial Action Task Force (FATF).
The CipherTrade and Shyft partnership will apparently develop a compliance system that is based on cryptographic access controls which will allow platforms to “securely transfer Proof of Knowledge without disclosing any personally identifying information (PII)” as the companies declared on July 2nd.
Meanwhile, G20 was all over the coming altcoin news for bringing its cryptoeconomy to heel. To date, this crypto economy has been like the Wild West – open and on the edge of regulation. However, the G20 is looking to put an end to this wildness and bring the digital asset ecosystem in the mainstream fold and under mainstream control.
CipherTrade and its CEO, Dave Jevans, hailed the new initiative and went on to describe it – also describing how the future of enterprise compliance could be introduced to the cryptoeconomy.
“With cryptographically controlled privacy mechanisms, it is possible to have both anonymity and responsible disclosure of the source of funds for legitimate purposes such as criminal or terrorist investigations and AML compliance. This is the direction that CipherTrace is working on for the future growth of cryptocurrencies globally. We believe that there are technological and regulatory solutions that can preserve privacy while enabling security and compliance.”
For his part, the founder of Shyft Joseph Weinberg noted that the program was a way for the cryptocurrency exchanges to update their operations without actually having to start from the ground up. The founder commented on the partnership with CipherTrade and was featured by many best cryptocurrency news sites for the following statement:
“We make sure KYC checks can be transferred across networks in a secure manner without compromising identity information. This program bridges a critical gap between new regulatory standards and existing exchange operations to greatly strengthen the crypto ecosystem with a practical implementation of the FATF’s Travel Rule.”
This partnership comes right after CipherTrace highlighted how $350 million worth of stolen cryptocurrency was sloshing around the crypto economy in Q1 of 2019.
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