Veriscope to Solve FATF Travel Rule-Related Crypto Compliance Issues? Testing Underway

Tether Operations, the company operating the blockchain-enabled platform, has commenced operations with Shyft Network, starting with active testing of Veriscope, its decentralized compliance framework and smart contract solution to the Financial Action Task Force’s (FATF) Travel Rule. The initiative will assist virtual asset service providers (VASPs)

Veriscope links user consent-permissioning with VASP-to-VASP data transmission and ensures VASPs can determine between honest transactions and data attacks. It was designed to act as a decentralized coordination and discovery system, open for any VASP or intermediary as a public utility for data attestation and routing. The platform provides a decentralized compliance framework and a smart contract platform for VASPs to enable Travel Rule compliance and aims to meet meets the growing demands of the rising regulatory efforts that have commanded attention and action across cryptocurrency, DeFi, NFTs, stablecoins, and many other elements of blockchain technology.

This integration marks the initial phases of Tethers’ trial of Veriscope which may allow Tether to offer its customers an experience that both promotes privacy while also solving global compliance requirements for all participants across the ecosystem. The goal of this trial is to create an experience for customers that maintains openness and ensures peer-to-peer transaction discovery that is compliant with the new FATF Travel Rule requirement.

“We built Shyft to ensure that the ethos of digital asset networks was maintained regardless of the regulatory requirements that would come,” said Joseph W. of Shyft Network. “We are excited to see this public system be put to work by the largest players globally, and are proud to see leading stablecoins, like Tether, maintain decentralization while allowing the ecosystem to meet regulations. We see systems like Veriscope, and networks like Shyft, as critical infrastructure layers to the future of decentralized data coordination and transmission.”

In August, Shyft Network, in collaboration with Tether, Bitfinex, and other exchanges, key industry players, and liquidity providers announced the global deployment of Veriscope, a public utility and application stack for solving the FATF Travel Rule. Recently, Shyft Core, the development team behind Veriscope, announced the open-source release of the infrastructure to enable developers and other VASPs to freely integrate with the platform. Tether will be one of the first to work with it..

“Veriscope’s opensource solution to discovering VASPs and transmitting customer information is an interesting use case that’s in line with the ethos of Bitcoin” said Leonardo Real, CCO of Tether. “We look forward to continuing to lead the charge”.

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