Tether Operations Limited, the operator of Tether (USDT), announced on Tuesday that they will use Notabene, a complete cryptographic travel compliance solution.
Tether will begin testing Notabene’s cross-border transactional monitoring system for Virtual Asset Service Providers (VASP) to combat financial crime such as money laundering.
Notabene is a new technology for real-time monitoring of cryptocurrency transactions that makes the blockchain more transparent and allows regulators to better track cash flows.
The company’s KYC infrastructure table is designed to include jurisdictions with little or no regulation of financial services.
Notabene claims to offer an environment with a low risk for testing complex cryptographic utility cases. Tether will use Notabene technology to determine if it can transfer metadata securely to clients on other VASPs. Especially when it comes to VASP transactions, Notabene’s solution will help Tether protect its customers.
The Financial Action Task Force on Money Laundering, the global group for money laundering standards, has decided that VASPs must follow the same rules as regulated financial institutions. The Itinerary recommends VASP to exchange specific customer information between counterparties for transactions of a specific amount.
These measures are designed to help states and service providers prevent money laundering and terrorist financing and comply with sanctions laws. Commenting on the new development, Leonardo Real, Tether’s Chief Compliance Officer, emphasized the importance of working with other VASPs and said:
“As pioneers in blockchain technology and leaders in transparency, we strive not only to keep up with the new rules, but also to help shape them. Since the travel rule has traditionally been applied to financial institutions, we see this as an opportune moment to expand collaboration across traditional and digital channels to create better customer experiences. globally. We are proud to lead the campaign. ”
According to a recent report from the Cointelegraph, the US Securities and Exchange Commission will be responsible for regulating and enforcing stack coins in the US. The Stablecoin market experienced tremendous growth in 2021, and this year Tether’s market value has increased by 229% YTD to reach $ 69.6 billion.