To anticipate money laundering, the United States government requires crypto
and financial technology (fintech) companies to disclose where their funds
flow.
On Thursday (17/2), Bloomberg reported that 18 companies were preparing
platforms to meet these requirements.
The US Treasury Department requires financial companies to submit
information including customer names, account numbers, and the date of the
fund transfer transaction.
Gemini Crypto Platform Compliance Head Elena Hughes said the association had
held meetings with American governments and global regulators about their
plans.
“We believe that the solution will enable top-level compliance for the rules
that are still being processed, and we are looking to get support from the
authorities,” Hughes said in an interview.
Crypto companies say the rules are out of date and the existing regulators
don't have the expertise to oversee the sector. Meanwhile, regulators are
pushing for tighter controls.
Commodity Futures Trading Commission chairman Rostin Behnam and Securities
and Exchange Commission chairman Gary Gensler, for example, called for more
aggressive oversight.
As is known, Travel Rule Universal Solution Technology (Trust) is a separate
platform from the blockchain used to transfer cryptocurrencies. Fidelity
Digital Assets, Kraken and Paxos are part of the Trust network.
Coinbase Chief Legal Officer Paul Grewal confirmed that there would be no
central balancing of personal data and investor information being sent
directly from one member to another.
“What makes Trust unique is that it is the most widespread solution in the
industry to this problem. This is an excellent example of an industry really
coming together to solve this problem on its own.”
He added that private software makers offer several compliance solutions.
Crito association members regard the offer with a positive response.
The rules for financial transactions in America have been around since 1996.
In 2020, the US Department of Financial Crime Enforcement Network proposed
amendments that expand the scope of these rules to crypto transactions.