Crypto.com, the creator of a cryptocurrency exchange, wallet, debit card program and crypto app, is strengthening its compliance toolkit by implementing a commercial solution developed by crypto intelligence firm CipherTrace.
CipherTrace’s tool, called Traveler, takes its name from being designed to meet the complex requirements of the Financial Action Task Force’s so-called “travel rule,” which came into force for Virtual Asset Service Providers, or VASPs, in 2020.
The FATF’s travel rule requires regulators and VASPs — including crypto exchanges, custody providers and OTC trading desks — to gather and share customer data during transactions. This approach broadly follows the requirements already in place for money transmitters in jurisdictions like the United States, which requires money transmitters to record identifying information on all parties involved in fund transfers made between financial institutions.
What makes the travel rule particularly challenging for various VASPs is the different local transpositions of the FATF’s guidelines in various jurisdictions across the world. Prior to adopting Traveler, Crypto.com had