Crypto Compliance Platform Shyft Begins Mainnet Deployment with Binance, Deribit, Tether & Other Big Exchanges
The project has initiated the phased deployment of Veriscope, which will help VASPs determine the difference between honest transactions and data attacks to comply with FATF’s Travel Rule.
As the cryptocurrency industry gets bigger and bigger and gains mainstream adoption, it is also attracting the attention of regulators who want the crypto-related businesses to implement know-your-customer (KYC) and anti-money laundering (AML) rules.
As we have seen with major players FTX, Binance, and BitMEX, crypto businesses are increasing their regulatory efforts.
And taking another step toward this is cryptocurrency exchanges BitMEX and Deribit, which has joined crypto compliance platform Shyft. Its Veriscope solution already has Binance, Tether, Huobi, Bitfinex, and many more virtual asset service providers (VASPs) as its clients.
The crypto compliance platform’s Veriscope solution uses smart contracts to identify exchange addresses and privately share KYC data. This solution provides an answer to the problem of discovering who a counterparty VASP is to a transaction, which is not an easy task, said chief compliance officer Malcolm Wright in a statement.
“The Veriscope solution provides for an answer to this problem that causes the least customer friction, whilst at the same time respecting data privacy, data consent, and security to the greatest extent.”
Excited to announce this as we begin a multi-phased deployment w/ the largest exchanges. Our mission is to protect decentralization from regulation. This is only a small part of @shyftnetwork as we work to deploy global attestation infra. 4 yrs in & we’re just getting started 🚀 https://t.co/0mZpl6P6ie
— Joseph Wein₿erg (@josephweinberg) August 17, 2021
Shyft, which was launched on mainnet a couple of months back, is currently beginning its phased deployment of a decentralized approach to AML rules from the Financial Action Task Force (FATF).
FATF’s ‘Travel Rule’ guidance requires VASPs and other service providers to report information about customers who are sending and receiving funds over a certain threshold in an attempt to counter money laundering and terrorist financing.