Tether Operations Limited (“Tether”), the business behind the blockchain-powered tether.to platform powering the world’s most valuable stablecoin, announced that it would be using Notabene’s solution for compliance to crypto Travel Rule. Tether will begin to test Notabene’s solution for protocol-agnostic VASP-to-VASP cross-border transactions to prevent money laundering and criminality.
Tether will be able to explore complicated crypto use cases in a low-risk, collaborative environment, thanks to Notabene. Tether will employ Notabene’s technology to examine how it can give other VASPs the needed identifying information in respect of its clients in a safe way. This will ensure customer protection, notably as it applies to transactions done by Virtual Asset Service Providers (VASPs).
The Banking Action Task Force (FATF), a watchdog that checks global money-laundering, has released recommendations that hold VASPS similar to the authorized financial institutions. The “Travel Rule” advises that VASPs working on virtual assets convey specified client data among counterparties for transactions exceeding a particular level. The guidelines brief recommendation by FATF in the essential region. These procedures are designed to aid nations and service providers in the fight against terrorist funding, money laundering, and compliance with sanctions.
Leonardo Real, the CCO of Tether, said that it is critical that Tether collaborates with other significant VASPS to start from the ground up and grow this sector. Tether is committed to following and shaping new rules as pioneers of blockchain technology and leaders in transparency. As the Travel Rule has historically applied to financial institutes, the firms believe this is an excellent opportunity to develop collaboration across conventional and digital channels helping to serve better service to clients globally. They are honored to lead the effort on behalf of all stablecoins that will create a positive difference in the way their clients are protected.
Notabene’s architecture will help Tether manage risk and provide a top-quality transfer experience for clients and introduce a trusted data layer to blockchain transactions.
Tether hopes to implement Notabene’s solution after successful testing. Tether aspires to be the industry leader in transparency and information delivery to all stakeholders.