Blockchain security firm CoolBitX and on-chain analytics company Elliptic are now pooling their technologies in a bid to help cryptocurrency firms better meet the demands of regulatory hurdles like the Financial Action Task Force’s (FATF) Travel Rule.
- Announced Tuesday, the two companies will provide a package of their respective solutions to firms such as exchanges or virtual asset service providers (VASPs) under FATF parlance.
- The tools include CoolBitX's Sygna Bridge product, an API-based messaging service enabling crypto firms to privately share data as required under FATF guidance for the world's regulators, issued last June.
- Also included are Elliptic’s on-chain analytic tools designed to help companies comply with anti-money laundering (AML) and countering the financing of terrorism (CFT) requirements from FATF.
- The Travel Rule requires VASPs to record identifying data on senders and receivers of transactions worth over $1,000 and pass the information on to other VASPs.
- CoolBitX CEO Michael Ou said the blockchain and crypto industries were at a “major crossroads,” with the Travel Rule posing a "daunting" challenge for companies.
- The partners' products would help firms avoid the risk of stepping outside FATF's AML and CFT rules, Ou said.
- The crypto industry is now seeing a number of initiatives developing solutions and standards to make it easier for firms to stay compliant as global regulators move to implement FATF's guidance.