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Identify crypto transaction type & apply relevant regulatory duties

Alice Nawfal
Alice Nawfal
March 17, 2021
Alice Nawfal, with a rich background in blockchain, public policy, and consulting, leverages her extensive experience in business operations and analytics to drive Notabene's growth and operational efficiency.

Over the past year, the crypto Travel Rule has become a critical issue for many crypto businesses. Throughout 2020, companies focused on finding a solution that would allow them to transmit their customers’ data to other crypto businesses in a secure and privacy-preserving way. 

However, when you take a closer look at the Travel Rule and how its implementation impacts day-to-day business processes, being compliant requires a lot more than just data transmission.

A complete compliance solution seamlessly integrated into your product

To help crypto companies fully comply with the Travel Rule, we’re launching today a set of new tools for data collection and wallet identification. This enables businesses to integrate the Travel Rule solution seamlessly into their products.

Rather than introducing standalone, disjointed compliance measures, we offer a comprehensive tool, that allows you to comply automatically and at scale. When compliance stops being an afterthought and catch-up game and becomes an inherent part of your product, it turns into a business asset.

Immediately identify which transactions fall under the Travel Rule

The Travel Rule is required only for transactions between custodial wallets. However, it’s impossible to determine the account type and owner just from a blockchain address. 

Existing blockchain analytics services can identify some of this information. Unfortunately, their research-based approach is probabilistic and can sometimes take weeks before identifying address types. This is time that compliance teams don’t have when assessing transactions, leaving room for many Travel Rule transactions to fall through the cracks.

With Notabene’s pre-built user interface components, you can collect the missing data from your users, as they initiate a payment. This lets you instantly identify the wallet type and counterparties involved in the transaction and apply necessary regulatory requirements. 

Easily collect and store data without adding friction to user experience

Until recently, most crypto businesses didn’t need to collect and store beneficiary data. The Travel Rule has changed that. This brings up many user experience, security, and data privacy concerns.

Companies must now run a complex process of analyzing every transaction that goes through their system. Then they have to ensure they gather from their customers only the minimum personally identifiable data required to satisfy regulatory rules. 

With our dynamic, data collection form, you request only the information required by relevant regulations, based on the jurisdiction, transaction threshold, and wallet type that cannot be retrieved from other sources (blockchain analytics services, etc). This not only minimizes the amount of PII businesses collect, store, and share but also helps you become compliant without sacrificing user experience.

Generate Travel Rule transfers automatically and comply at scale

After identifying relevant transactions and collecting the necessary data, Notabene creates Travel Rule transfers and automatically sends them to intended counterparty institutions. This way, most of the data transfers are generated seamlessly and in the background, freeing up your compliance officers to focus only on edge cases (which are also flagged by Notabene’s system, but that’s a different topic for another blog post :)). 

Save valuable time and resources 

New compliance requirements often create additional resource burdens on product and dev teams. For this reason, we built our data collection and wallet verification tool with developers in mind! An easy integration that’s also fully customizable gives dev teams time back, which would otherwise go towards designing, building, and testing an in-house compliance solution.

If you still want to build your own UI components (we get it!), our API allows for seamless integration directly into your front-end. 

Interested in learning more?

Book a demo today!