Tether wants to combat money laundering with the help of the Notabene transaction monitor – DiarioBitcoin

For Hannah perez

The USDT operator said it will leverage Notabene’s technology to meet FATF compliance standards. The news comes at a time of increased regulatory pressure for stablecoins.


Tether, the issuing company of the stablecoin USDT, has partnered with the firm Notabene to combat financial crimes in transactions with digital currencies.

The company reported the trial partnership in a statement Tuesday. In accordance with Tether, the agreement will allow you to take advantage of the Notabene to combat money laundering in cross-border transactions. The startup provides software to cryptocurrency exchanges to help them identify their users and track transactions.

The alliance with Notabene will help Tether to comply with the “travel rule”Of the Financial Action Task Force (FATF), which requires financial institutions to exchange customer information therefore senders as recipients of relevant transactions. This was reported by the company through a statement shared on its Twitter account.

To assist cryptocurrency exchanges, digital wallet providers, and financial institutions with the new FATF Travel Rule requirement, Tether will start testing the Notabene platform.

Tether seeks to comply with FATF standards

It should be noted that the FATF, Paris-based global money laundering watchdog, expanded sUse guidelines for cryptocurrency compliance to include stablecoin exchanges and issuers. These were referred to as Virtual Asset Service Providers or “VASPs.”

The body has determined that VASPs must adhere to the same rules as regulated financial institutions, including the “Travel Rule,” which advises companies to exchange customer-specific information between counterparties for transactions worth more than a certain amount.

These measures are intended to help nations and service providers prevent money laundering, terrorist financing, and compliance with sanctions laws. Commenting on the new agreement, the Chief Compliance Officer Tether, Leonardo Real, emphasized the importance of working with other suppliers in the industry.

We are dedicated to not only keeping up with the new rules, but helping to shape them. Because the Travel Rule is traditionally applied to financial institutions, we see this as an opportune time to foster cooperation through traditional and digital channels in order to create better services for clients globally.

Notabene offers new technology for monitoring cryptocurrency transactions in real time, making the blockchain more transparent and allowing regulators to better track cash flow. In particular, Tether will use the technology of Notabene to determine if you can securely transmit customer identification data on other VASPs.

An outlook of increased regulatory pressure

The effort of Tether to comply with FATF guidelines stands in contrast to the recent controversial events in which the company has been embroiled. Earlier this month, Tether received a wave of criticism after a report by Bloomberg claimed that the company had billions of dollars in Chinese debt products when the crisis of Evergrande shook international markets.

More recently, the issuer of the popular stablecoin and its sister company Bitfinex They were fined by the US Commodity Futures Trading Commission (CFTC) for a combined sum of USD $ 42.5 million for misrepresenting USDT endorsement documents. These latest investigations and accusations by regulators have prompted criticism from the community alleging the lack of transparency of Tether.

The news about the alliance of Tether to combat financial crime occurs just when the US Securities and Exchange Commission (SEC) has indicated that it will deal with the regulation and application of law to stablecoins from the country.

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Sources: Press release, CoinDesk, Cointelegraph, archive

Hannah Estefanía Pérez’s version / Daily bitcoin

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Tether wants to combat money laundering with the help of the Notabene transaction monitor – DiarioBitcoin

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