British Virgin Islands, October 20, 2021, 12:00 PM BST - Tether Operations Limited (“Tether”), the company operating the blockchain-enabled platform Tether.To that powers the largest stablecoin by market capitalization, announced today that it will be utilizing Notabene, an end-to-end solution for crypto regulatory compliance. It will begin testing its protocol-agnostic solution for Travel Rule compliance in order to bring transparency to cross-border transactions.
Notabene will enable Tether to test complex Travel Rule transactions in a collaborative, low-risk environment as the stablecoin issuer prepares for new regulations. In order to ensure customer protection, specifically as it pertains to transactions made by Virtual Asset Service Providers (VASPs), Tether will use Notabene’s solution to share, send and receive counterparty information alongside blockchain transactions to counterparties that use the same infrastructure.
Global money-laundering watchdog the Financial Action Task Force (FATF) has issued guidelines holding crypto companies to similar standards as regulated financial entities. The “Travel Rule” recommends that VASPs dealing with virtual assets should transmit specific customer data between counterparties for transactions over a certain threshold. The updated guidelines describe the FATF’s recommendations in key areas, including how the FATF standards should be applied to stablecoins. These practices are intended to assist countries and service providers to combat money laundering, terrorist financing, and abide by Sanctions measures.
Paolo Ardoino, CTO of Tether.
“It's important that we work with regulators to build this industry from the ground up as pioneers of blockchain technology and leaders in transparency, we are dedicated to not only keeping up with new rules but helping shape them. Because the Travel Rule also applies to traditional financial institutions we see this as an opportune moment to foster cooperation across traditional and digital channels in order to create better services for customers globally. We are proud to lead the charge on behalf of all stablecoins in order to make a positive change towards protecting our clients.”
Pelle Braendgaard, CEO of Notabene, comments:
“Tether’s stablecoin has rightfully cemented its role as a core part of the global crypto industry. Notabene is excited to help Tether bring out FATF Travel Rule compliance across its global network, leading to a safer and more regulatory compliant crypto world.”
By bringing a trusted data layer to blockchain transactions, Notabene’s design will assist Tether in managing counterparty risk and deliver a best-in-class payment experience to its customers while maintaining GDPR compliance and user data protection.
With the successful integration of Notabene’s solution, Tether aims to maintain its reign as a leader in transparency and in getting information to the community as well as its stakeholders, while demonstrating full compliance with regulatory requirements. To learn more about Tether, please visit, https://tether.to/.
Tether is the preeminent stablecoin with the biggest market capitalization, surpassing that of all rival offerings combined. Created in October 2014, Tether has grown to become the most traded cryptocurrency. Tether is disrupting the legacy financial system by offering a more modern approach to money. By introducing fiat currency denominated-digital cash to the Bitcoin, Ethereum, EOS, Liquid Network, Omni, Tron, Algorand, and Solana blockchains, Tether makes a significant contribution to a more connected ecosystem. Tether combines digital currency benefits, such as instant global transactions, with traditional currency benefits, such as price stability. With a commitment to transparency and compliance, Tether is a fast and low-cost way to transact with money.
Notabene is a reg-tech SaaS solution that turns regulatory compliance into a competitive advantage. We are working to make crypto transactions a part of the everyday economy by providing software, tools, and comprehensive data to manage regulatory and counterparty risks in crypto transactions. Companies leverage our end-to-end FATF Travel Rule solution to identify virtual asset accounts, perform mandated VASP due diligence, and manage global transactions from one dashboard. Trusted by leading exchanges, Luno, Bitso, Crypto.com, and more.
Alice Nawfal, COO, Notabene