[ad_1]
Just before the Financial Action Task Force (FATF) released the organization’s 12-month review, a working group called Travel Rule Protocol (TRP) released its version 2.0 of the Application Programming Interface. (API) crypto TRP in order to “simplify the end-user crypto-trading experience.” TRP is backed by big banks like Fidelity Investments, Standard Chartered and ING Bank and 25 Virtual Currency Service Providers (VASPs).
Travel Rules Focused Crypto Working Group Releases Protocol Version 2.0
The Travel Rule Protocol (TRP) is an organization that aims to improve cryptographic financial transaction data in order to comply with KYC / AML policy. The organization is backed by major financial institutions and crypto exchanges and custodians like Bitgo, Coinbase, Kraken, and Gemini.
The Travel Rule Protocol (TRP) was revealed last year when 25 US-based VASPs released a document showing how companies aim to comply with the FATF travel rule. The organization has also released a crypto TRP version 1.0 application programming interface (API) and the product is a solution for any organization to identify data related to crypto transactions that meets the requirements of the travel rule based. on the FATF.
This week, the TRP group launched version 2.0 of the protocol and claims that the solution “is based on [the] Previous Travel Rule Protocol version 1.1.0 by adding an easy-to-use workflow for end users while solving the “discoverability” issue. In addition, TRP 2.0 provides a simple way for VASPs to “comply with FATF recommendations without placing an additional burden on end users”.
The organization believes that the implementation of the TRP API is easy for VASPs to integrate into their existing framework. “A number of TRP working group members have created implementations of the TRP API that can be used immediately,” notes the launch announcement.
“It was important to the TRP Working Group that the end-user experience was as straightforward as possible and no more difficult than typical pre-Travel Rule industry practices,” said the working group chair. TRP, Andrew Davidson, in a statement. “We decided to adopt a workflow based on the existing LNURL standard, a bech32 encoded query string from the Lightning Network. The solution can be used with any virtual asset and gives the VASP a lot of flexibility to tailor it to the needs of its users while making a solution easy to implement or adopt, ”Davidson continued:
With the LNURL-based workflow, we have enabled end users to have an almost identical user experience to what they are used to with existing virtual asset platforms, while being in line with FATF recommendations and bypassing the complexity of VASP discoverability. .
“TRP protects clients against criminal third parties”
The “travel rule” is essentially a descriptive label for the rule of the Bank Secrecy Act (BSA) [31 CFR 103.33(g)]. The rule basically requires all financial companies to pass transmission data such as KYC / AML to the next financial institution. “Money transfer rules are designed to help law enforcement agencies detect, investigate and prosecute money laundering and other financial crimes by keeping a track of information about who sends and receives funds through systems transfer of funds ”, explain the financial regulators.
FATF 12-Month Review of Virtual Assets (VAs) and VASPs Highlights Use of ‘Anonymity Tactics’ and ‘Lack of Effective Regulation’ Continue to Plague the Crypto Industry -change. If the TRP Working Group Protocol 2.0 API meets the FATF recommendations, it likely follows the “designated threshold above which VASPs are required to exercise customer due diligence is $ 1,000 / EUR ”.
“The latest update to TRP 2.0 enables us and the virtual asset ecosystem as a whole to deliver even more secure services and protect our clients from third-party criminals”, Christopher Kiew-Smith, compliance officer at Zodia, a member company of the TRP Task Force said.
What do you think of the TRP API? Let us know what you think of this topic in the comments section below.
Tags in this story Bank Secrecy Act, BitGo, BSA, Coinbase, Crypto, Cryptocurrency, fatf, loyalty, Gemini, ing, Kraken, Regulations, Standard Chartered, Travel rule, FATF travel rule, Travel rule protocol, TRP, VA, VASP, Virtual Assets Working Group
Image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, nor a recommendation or endorsement of any product, service or business. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, good or service mentioned in this article.
[ad_2]
picture credit