Shyft Network has hired two former Financial Action Task Force (FATF) executives to assist in the development of its regulatory compliance product.
FATF’s former executive secretary, Rick McDonell, was added to the blockchain firm’s board, along with the former head of the Canadian delegation to the FATF, Josee Nadeau. Both held their respective positions at the FATF – a global money-laundering watchdog – for about a decade each.
Shyft operates a digital identity protocol for permissioned and permissionless blockchains in both private and public ecosystems. The firm is currently working with Bermuda’s government to roll out the first phase of a digital ID solution for citizens of the island nation, as well as visitors and enterprises.
In July, Shyft teamed up with CipherTrace on an initiative that aims to help cryptocurrency exchanges comply with tough new rules announced by the FATF in June. The new “travel rule” guidance for FATF member nations sets out that "virtual asset providers" (VASPs) must obtain, hold and share know-your-customer (KYC) information with other VASPs – and potentially governmental bodies – for cryptocurrency transfers above a certain threshold.
While CipherTrace's solution (known as TRISA) is distinct from Shyft's, a source with knowledge tells CoinDesk "they're not competing solutions, they're inherently collaborative."
Still, observers say the race is on to establish a global standard for FATF compliance.
Shyft said it has teamed up with some of the "top 10" cryptocurrency exchanges to develop its solution to a vexing problem: VASPs currently lack a compliant way to share KYC data that also maintains user privacy.