Tether tests Notabene to combat money laundering


Tether will start using Notabene, an end-to-end solution to combat money laundering and crime in cryptocurrency transactions

With this move, Tether is once again demonstrating its commitment to transparency and legality.

Notabene, Tether’s solution to money laundering

Notabene is a second layer blockchain solution designed to enforce the Travel Rule. This is a Financial Action Task Force (FATF) imposition that aims to apply the same rules to crypto service providers as to financial institutions. 

Specifically, the Travel Rule imposes an obligation to obtain, hold and transmit information on the sender and recipient of suspicious transactions. Other obligations include freezing funds and stopping transactions to and from suspicious persons. 

Tether will begin testing Notabene in order to become compliant with the Travel Rule and thus combat money laundering and illegal activities that exploit crypto. 

The Travel Rule also applies to so-called VASPs (Virtual Assets Service Providers), i.e. entities that facilitate cryptocurrency transactions. 

Tether will have to test how to send the required information securely. Upon successful testing, Notabene will be permanently integrated into Tether

Tether for legality

Tether for better transparency in the crypto world

With the upcoming integration of Notabene, Tether demonstrates its commitment to transparency and legality. 

Leonardo Real, CCO of Tether, explains: 

“It’s important that we work with other large VASPS 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 traditionally applies to 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 added:

“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 crypto Travel Rule compliance across its global network, leading to a safer and more regulatory compliant crypto world”.

Tether, the queen of stablecoins

It is no surprise that Tether is among the first crypto businesses to pioneer solutions to combat crime and money laundering involving cryptocurrencies.

Tether is the queen of stablecoins, with a total capitalization of almost $70 billion. It is the most widely used stable cryptocurrency on most exchanges for transactions, as its value closely replicates that of the US dollar.

Tether has been able to gain the trust of investors through transparency. It has been disclosing its reserves for some time now. For every USDT minted, there must be one US dollar to back the token. Tether has reserves in cash and other assets and is fully backed. This has allowed it to dominate the stablecoin sector, with a capitalization twice that of its direct competitor, USDC. 

Source link

Leave a Reply

Your email address will not be published.

GIPHY App Key not set. Please check settings

What do you think?

Dubai govt. introduces new guidelines for crypto

Dubai govt. introduces new guidelines for crypto

Ethereum Price

Santiment: Ethereum could stay above $4,000