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.
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.