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The “Travel Rule” intends to bring virtual asset service providers’ reporting responsibilities in line with those of other traditional financial institutions.

On Tuesday, Tether Operations Limited, the company behind the USDT cryptocurrency, stated that it would adopt Notabene, a complete solution for bitcoin Travel Rule compliance.

Tether will put the Travel Rule to the test for cross-border transactions

Tether will begin testing Notabene’s cross-border transaction monitoring technology for virtual asset service providers (VASP) to tackle financial crimes, including money laundering.

Notabene is a cutting-edge technology that helps regulators better manage money movement by tracking bitcoin transactions in real-time.

The firm’s Know Your Customer infrastructure stack is built to perform in situations where financial services regulation is minimal to non-existent.

Setting that is low-risk

Notabene claims to offer a low-risk environment in which to develop complex cryptocurrency applications. For example, a rope will use Notabene’s technology to determine if it can send client data securely over VASPs.

VASPs should follow the same standards as authorized financial institutions, according to the Financial Action Task Force, an international group that develops anti-money laundering recommendations. The “Travel Rule” instructs VASPs to transmit specific customer information between counterparties for transactions over a pre-determined sum.

These procedures are intended to help countries and service providers combat money laundering, terrorist funding, and compliance with sanctions rules—the importance of partnering with other VASPs, according to Tether’s chief compliance officer Leonardo Real.

The Securities and Exchange Commission of the United States will be in charge of stablecoin regulation and enforcement in the US. Tether‘s market value increased by 229 percent to $69.6 billion in 2021, indicating that the stablecoin industry is booming.

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