Saturday, December 4

If you send USDT to another country from an exchange, your data will be shared

In cross-border transactions greater than 1,000 USDT between custody platforms such as exchanges, user information will be shared. Tether Holdings Limited announced that it will implement measures to ensure compliance with this rule.

Tether unveiled the implementation of software that will allow it to comply with the travel rule and combat money laundering throughout its global network. These are actions suggested by the Financial Action Task Force (FATF), as reported by Tether in a release, today, October 26.

The company explained that, with Notabene, company behind the protocol that Tether will use, they will “protect” user information when making transactions between cryptocurrency platforms, without leaking anything along the way. Notabene explains that its solution includes a specialized wallet that allows identifying whether a transaction comes from a wallet in personal custody or guarded by a third party, as well as identifying whether the transaction requires compliance with the travel rule.

Notabene’s wallet also collects missing data from counterparties to maintain an up-to-date information base. Source: incidentally.

The company that created the first stablecoin indicated that it will begin testing the solution, which is compatible with various protocols, also to combat money laundering and crime in cross-border transactions between platforms.

Tether enters the FATF line

Tether’s ad is a sign that he wants comply with regulators international organizations such as the FATF and, thus, try to remove the narrative of irregularities in which it has allegedly been involved, especially in the United States, as reported by CriptoNoticias.

Later in the press release, the company mentions the FATF guidelines that require virtual asset service providers to same standards as regulated financial institutions, as well as those related to the travel rule.

The travel rule is a regulation that must be adopted by service providers with virtual assets, including exchanges. The objective is share information between them on users who carry out operations that exceed USD 1,000.

Despite the fact that the FATF is an international body whose recommendations are not binding, that is, it does not establish laws as these are the responsibility of each jurisdiction, Tether has decided to comply with its guidelines.

Notabene automates data transfers between exchanges in order to comply with the travel rule. Source: Notabene.

However, in the case of the Group’s member countries, they usually follow the recommendations in order to avoid being sanctioned or included in “black lists”.

“We are proud to lead the charge on behalf of all stablecoins in order to make a positive change towards protecting our customers,” said Leonardo Real, executive of Tether.

FATF has everything ready for a new regulation

Tether’s recognition of the FATF regulations comes after the Group announced a few days ago that it had everything ready to publish a new regulation on October 28, as reported by CriptoNoticias.

Thenew regulation targets cryptocurrencies and service providers of digital assets, as well as for stablecoins, non-fungible tokens (NFT) and decentralized finance (DeFi).

“The updated guide is intended to help countries and the private sector implement the FATF standards. The FATF expects countries and the private sector to implement the standards, ”the document highlights.