Bitstamp is reporting that it has implemented Notabene’s solution for regulatory compliance under FATF’s global Travel Rule regulations across the US, EU, and Singapore. Notabene is a Regtech Software-as-a-Service solution provider that is headquartered in New York with offices around the world.
The Financial Action Task Force (FATF) created the Travel Rule to require global “Virtual Asset Service Providers” or VASPs to track buyer and seller information on crypto transactions. The goal is to mitigate attempts at illicit activity such as money laundering, terrorist financing, and more recently sanction busting.
Bitstamp cites the example of Singapore and differing requirements by global regulators. The Monetary Authority of Singapore requires the ordering institution to value originator and beneficiary information to the beneficiary regardless of the transaction amount, with further information required exceeding 1,500 SGD. The United States Financial Crimes Enforcement Network (FinCEN) set a suggested crypto Travel Rule threshold of $3,000. Meanwhile, in Europe, the European Banking Authority (EBA) set a threshold of € 1000. Bitstamp states that it now complies with all demands.
Bitstamp explains that it required a sophisticated solution that streamlines VASP due diligence, counterparty wallet identification, automates transactions, and routes Travel Rule compliant data transfers to the largest number of VASPs.
Julian Sawyer, CEO of Bitstamp, said their partnership with Notabene is indicative of their position as a leader in crypto security:
“Ensuring investors can trade safely and securely is a key priority for us and today’s partnership will enable us to deliver this to a growing number of traders across different jurisdictions, through the use of Notabene’s pioneering technology. Notabene’s global reach was one of the main reasons we decided to work together so we can roll out our solution to markets around the globe to further support investors.”
Pelle Brændgaard, CEO of Notabene, added that exchanges with high volumes and numerous counterparties require a robust solution:
“Bitstamp chose our sunrise-friendly universal end-to-end travel rule solution which features our proprietary protocol switch offering the widest coverage r of VASPs globally. Notabene is proud to collaborate with Bitstamp, the world’s longest-running cryptocurrency exchange.”