As much as some cryptocurrency fans would prefer to throw temper tantrums and refuse to accept the truth, digital currency is currency before anything else. As such, it is, and was designed to be, compatible with financial laws governing currency and the transition from a hidden network of payment operations to a legitimate and regulated system continues to move forward.
The Financial Action Task Force (FATF) has set in motion a process to have all crypto transactions recorded and customer information provided and shared, and the world’s G20 has already said it would be willing to accept the guidance. To help crypto companies adapt to the new regulatory framework, CipherTrace has become the latest to offer a solution to help entities comply with the FATF’s “Travel Rule.”
The blockchain security firm published a white paper and software that can be used by wallet providers and exchange platforms in order to follow the FATF’s guidelines. The software facilitates the exchange of information, as recommended by the task force, and provides a solution that some have said wasn’t possible. According to CipherTrace’s chief marketing officer, John Jefferies, many have asserted that it would be impossible to offer a compliant solution, but the company has shown that it can be done.
CipherTrace has been supportive of the FATF’s goals since they were announced a few months ago. The company’s CEO, Dave Jevans, said at the time, “With cryptographically controlled privacy mechanisms, it is possible to have both anonymity and responsible disclosure of the source of funds for legitimate purposes such as criminal or terrorist investigations and AML compliance. This is the direction that CipherTrace is working on for the future growth of cryptocurrencies globally. We believe that there are technological and regulatory solutions that can preserve privacy while enabling security and compliance.”
CipherTrace isn’t the only entity that has come up with a workable solution to the FATF’s policy.