March 28, 2024

Tether will check for compliance with regulatory requirements

The issuer of the largest stablecoin by market capitalization USDT, Tether Holdings Limited, announced the integrationNotabene solutions to meet regulatory requirements for crypto transactions.

According to a statement on Tuesday, Tetherwill test the Notabene platform against the Crypto Travel Rule, a mandate set by the Financial Action Task Force on Money Laundering (FATF) on June 20, 2021.

Notabene's holistic solution will enable Tether to fight illegal transfers:

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

The Travel Rule states that service providersvirtual assets must comply with the same laws as regulated financial institutions and statutory entities. They must perform KYC (know your customer) processes and exchange relevant customer information between counterparties when transferring a certain number of digital assets.

This step was taken after Tethercame under scrutiny from regulators such as the US Commodities and Futures Trading Commission (CFTC), which fined Tether and its parent company Bitfinex $ 42.5 million for misleading statements about the USDT token.

The Tether team claims to be in compliance with international regulatory requirements and are fully committed to the principles of transparency.

It is important that we work with other majorvirtual asset service providers to rebuild the industry from the ground up. As pioneers of blockchain technology and leaders in transparency, we strive not only to keep pace with the new rules, but also to help shape them.

Since the Travel Rule has traditionally been applied tofinancial institutions, we see this as an opportune moment to develop collaboration through traditional and digital channels to create better services for customers around the world, '' said Leonardo Real, Chief Commercial Officer of Tether.

Source