Shyft Network will now add Bitfinex, Tether, and Huobi into its crypto-focused anti-money laundering task force as we are reading more about in our tether cryptocurrency news.
According to the announcement by the Shyft Network, the Veriscope Governance Task Force includes new members such as binance, Bitfury, Unocoin, Tokocrypto, and CoinHako. Shyft is a well-known participant in the race to bring bigger crypto adoption in line with the Financial Action Taskforce and the AML regulations as they hired Rick McDonell, the heavyweight advisor and former FATF executive secretary, and Josee Nadeau who was the head of the Canadian delegation of the FATF. These two will work together in the new governance task force. McDonell said:
“Veriscope intends to provide a governance and rules framework whereby virtual asset service providers [VASPs] can trust each other. It keeps them in a democratic environment in terms of making rules and, because of the transparency between them, allows firms to take the risk of sharing information that could at times be commercially competitive.”
The FATF issued guidance requiring VASPs to share the know-your-customer data between the transacting originator and the beneficiary. This information has to “travel” with digital asset transfers of more than $1000. In order to rebuild SWIFT, the 50-year old interbank messaging system, the crypto industry has to improve governance frameworks according to Shyft’s co-founder Joseph Weinberg:
“The one thing that you can’t get away from is you still need to onboard the VASP to the network,” Weinberg said. “It’s really about defining the onboarding governance framework, an open mandate for the best practices for any VASP that has to join into the network. What are the rules?”
Good News: “It’s an inclusive working team that’s open to any other VASPs to join"
— BCW Group (@BCW_llc) September 2, 2020
Despite the fact that crypto was designed to be pseudonymous, the industry responded with an array of technical solutions which is an approved messaging standard. Coordination among other approaches to the Travel Rule problem is needed but so are the responses to the changes or updates in the protean regulation from one jurisdiction to the next as well as with the incoming FATF guidance. Another key area here is the interoperability as Weinberg said because it should be governed by the exchanges rather than the protocol teams:
“Everyone’s talking about it.”
He went on to say that no firm should be precluded from accessibility but the VASPs should be given tools and baselines to determine how counterparties will share information:
“It’s an inclusive working team that’s open to any other VASPs to join. For the users of the system. Shyft developers are handing over the most important decisions to the stakeholders.”
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