Bitfinex starts testing new AML compliance tool by Notabene

Bitfinex, the well-known cryptocurrency exchange, is working on testing a new Anti-money Laundering (AML) tool on the platform.

On October 27, the exchange giant announced that it is testing a new AML tool designed under the “Travel Rule.” In 2019, the Travel Rule was introduced by the Financial Action Task Force (FATF), a Counter Financing of Terrorism regulation created for institutions.

Bitfinex has joined hands with compliance startup Notabene to apply its software-as-a-service solution to track cross-border payments, find virtual assets accounts, and work in accordance with other regulations by Virtual Asset Service Providers (VASPs). The introduction of the tool into the system would allow the firm to collect and manage Travel Rule-related information along with ensuring privacy and security.

As per the announcement, the AML tool will also allow Bitfinex to share, send, and receive counterparty data in parallel with the blockchain transactions to any counterparties that have the same framework.

The sister company and the world’s biggest stablecoin, Tether (USDT), has also started using Notabene’s product for the company. 

Bitfinex and Notabene aim tool’s excellence 

The chief technology officer (CEO) of Bitfinex, Paolo Ardoino said that the company has “always led in following global regulatory requirements.”

On the other hand, Pelle Braendgaard, the CEO of Notabene, said that the firm had launched its travel rule solution in August last year. This service is already live on more than 50 different exchanges like Paxful, BitSo, Luno, and others. The firm has been testing the product across many jurisdictions. In early October, it also included the Financial Services Regulatory Authority of Abu Dhabi Global Market in its list.

Braendgaard explained that the compliance over Travel Rule is increasing very quickly, and he expects several big VASPs to comply by early 2022.

The FATF is reportedly working towards making the crypto Travel Rule even better since it launched the framework two years back. As TheCoinRise reported, it recently published AML guidelines for the crypto industry. 

Earlier this year, the authorities published a review report to adapt its Travel Rule guidance for crypto peer-to-peer transactions and stablecoins. 

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