Muhaimin is a journalist, a fintech and crypto enthusiast who is passionate about its development in Africa and across the globe. Muhaimin derives pleasure in reporting and analysing happenings in the crypto world and a believer in Blockchain technology.
ING bank has offered the Travel Rule Protocol (TRP), a crypto-friendly regulation, that will help the Financial Action Task Force (FATF) to improve the travel rule requirement for crypto firms.
Netherland based retail bank ING that admires blockchain technology has come up with a protocol to help the Financial Action Task Force (FATF) with its travel rule requirement for crypto firms. ING Bank proposed solution dubbed Travel Rule Protocol (TRP), a crypto-friendly regulation that has been supported by Standard Chartered Bank, Fidelity Digital Asset alongside many other crypto firms.
FATF also has been doing quite well in regulating the crypto space in the country. Its recommendation two years ago to include virtual asset service providers (VASPs) in its anti-money laundry scope has lead to technological solutions and messaging standards in that regard. However, with the ING bank proposed protocol, it would be the first time a bank has been involved in the crypto travel rule solution.
Alongside crypto firms that were in support of the ING Bank protocol, the InterVASP working group also backed the idea. Reportedly, ING Bank has been seeking a solution to FATF’s “Recommendation 16” for digital assets last year. This was to help them get an understanding of where the industry would see opportunities for banks when they are able to play in that space.
ING Bank Protocol Characteristics
The protocol ING recommended contains a Representational State Transfer API (RESTful). It is majorly a way of transferring data from one place to another on the Internet. Virtual assets service providers involved in the process must be able to publish address entries. In this way they pick up an identity.
The bank before now has been known to be very innovative regarding blockchain technology and usually contribute towards privacy-enhancing technology. However, one thing about the Travel Rule experiment is that institutions like IMG, U.K.’s Standard Chartered Bank are getting closer to the crypto world and regulated virtual asset service providers (VASPs). Alongside ING, some other firms participating in the TRP working group are Crypto Broker AG, Metaco, 21 Analytics, and OSL/BC Group. The CEO of Notabene Pelle Braendgaard also said his team would support the TRP solution.