The increasing popularity of digital assets has made it mandatory for organizations operating in the category to comply with Travel Rule laid out by the Financial Action Task Force (FATF). According to the latest news, Pundi X, a virtual asset provider (VASP), has joined the VerifyVASP Alliance to comply with regulations and make its share of contribution in bringing more legitimacy to the digital assets domain. Just for your knowledge, VerifyVASP Alliance is a governing association that is constituted with the objective of bringing more transparency and trust to digital transactions.
VerifyVASP Alliance offers an easier way to comply with the new Travel Rule promulgated by the FATF. These new provisions have been laid out in order to curb the money laundering processes while ensuring that the exchange of value happens only through the legal route. VerifyVASP facilitates the quick transfer of information between various VASPs while keeping data privacy intact through encryption technology. Some of the credible names which are part of the VerifyVASP include the likes of Bitkan, Pintu, Legatus, Skybit, VCC, Sparrow, and Upbit APAC, among others. VerifyVASP Alliance is headquartered in Singapore, and it works in collaboration with Dunamu’s subsidiary, the Lambda256. Lambda256 is a well-reputed name in the blockchain domain, and in fact, it is the largest blockchain service platform in Asia.
The importance of this development couldn’t be overemphasized, especially in the wake of ongoing coronavirus pandemic in which we are witnessing more and more people subscribing to the idea of digital assets. Joining the VerifyVASP will lend extra credibility to services offered by Pundi X. It also means that we are heading towards an interconnected world where information can be shared among business partners in a safe and secure manner. The issue of trust and credibility remains one of the stumbling blocks in the digital asset category. This new development will definitely help to assuage the concerns of many potential customers.