By
Chimamanda U. Martha
April 26th, 2024
Crypto Finance AG and 21 Analytics successfully completed a Bitcoin transaction in accordance with the standards of Financial Action Task Force (FATF).
Two Swiss Firms, Crypto Finance AG and 21 Analytics in collaboration with My Pelerin announced on Thursday that they have successfully completed a Bitcoin transaction that complies with the AML standards of Financial Action Task Force (FATF).
Approximately $23 was sent with the help of this transaction organized by Swiss companies. The regulator demands the same level of compliance from crypto Fintechs as it does with traditional financial institutions.
Regulatory Demand for IDs
The Swiss market regulator demands that virtual assets service providers (VASP) reveal the originator and recipient of every fund sent that is more than $1000. The rule which came into effect last year saw to it that compliance was manually done, but Thursday transaction is the first in which participants data was automatically sent.
According to Lucas Betschart, the founder and Chief Executive Officer (CEO) of 21 Analytics:
“The transfer was fully automated using TRP, instead of manually creating PDFs and sending that for each transaction, which happened to be the case for FINMA-regulated Swiss VASPs so far”.
The novel transaction was powered by 21 Analytics’ AI called regtech. It was shown to be in full compliance with the Travel Rule Protocol (TRP) of FATF.
According to the CEO of Crypto Finance,
“The global adoption of crypto assets requires an international standard as well as the technology and processes to comply with it. We are pleased that this could be implemented in record time,”
Killing Anonymity
Many users of digital currencies revel in its privacy features even though this is not a general characteristics of all cryptocurrencies. The need for regulatory compliance has been at variance with the decentralization principle of the ecosystem. FINMA’s new AML rule requiring the identity of users of crypto assets, especially when funds more than $1000 are sent effectively ensures that users served through licences financial services providers reveal their identities.
This has become necessary as the need to curb financial crimes has taken center stage.
“This live demonstration shows once again that crypto assets and regulatory compliance are compatible through practical solutions, which a key focus of our tokenization technology,”Arnaud Salomon, CEO of Mt Pelerin, said.