The COVID-19 pandemic is forcing governments around the world to focus on introducing blockchain technology into their financial services, along with the regulatory updates needed to keep a thriving fintech industry clean.
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For example, on September 10, Switzerland – the global center of the asset management industry, home to nearly $ 2 trillion, or 27% of the world’s offshore assets – issued a revised Blockchain law that includes a new set of laws and regulations to support growth. Decentralized financial companies in the country.
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Additionally, in a milestone in the crypto industry, the leading nonprofit organization the Travel Rule Information Sharing Alliance, or TRISA, developed by Ciphertrace and the developer of the world’s first tracking tool for Monero, along with CoolBitX’s Sygna Bridge, has announced its proof. Interoperability concept. So that crypto service providers on both systems can meet the requirements stipulated in the travel regulations. It is available to everyone on GitHub.
The track was introduced by the Financial Action Task Force in June 2019 and requires financial institutions to participate in cryptocurrency transactions to share KYC or KYC information about the intended recipient and sender. As a result, Virtual Asset Service Providers (VASPs) can share compliance data with minimal disruption between the two solutions.
As Michael O, CEO of CoolBitX and founder of Sygna Bridge explained: “Several innovative solutions have been demonstrated in recent years to help cryptocurrency and virtual asset companies comply with money laundering regulations that are beginning to evolve. After all, money laundering and terrorist financing are global issues that require cooperation between different organizations. It all starts with ensuring that solutions can communicate effectively with each other. By adapting industry standards such as IVMS101 and construction tools to ensure proper translation and communication, Sygna Bridge operates Together, TRISA is to drive the growth and development of the cryptocurrency industry in a positive direction. ”
John Jefferies, Chairman of TRISA added:
“Achieving global compliance interoperability for cross-jurisdictional travel is essential to a successful dawn phase. We are excited to include interoperability in messaging and extend VASP interoperability in this travel document.”
According to statistics published by the US Drug and Crime Administration, up to $ 2 trillion is laundered annually in the global market, beating the latest KYC cryptocurrency metric. According to the latest CipherTrace report, financial institutions can skip up to 90% of cryptocurrency-related transactions because they ignore lesser-known digital asset exchanges.
Until they are finally caught by law enforcement in the United States, criminals choose to use cryptocurrency switches or cryptocurrency mixing services to pay for illegal goods and services transferred without government or central bank oversight, thereby blocking the path to the original source of the fund.
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Nearly a month after the announcement of the largest seizure of cryptocurrency assets terrorist organizations had ever used, as part of an interagency investigation by the FBI, the Internal Security Investigation and Criminal Investigation Department of the Internal Revenue Service, and the US State Department. Justice Organization revealed the results of a five-year operation against Mexican drug cartels. September 3.