CipherTrace and Shyft have announced to cooperate in order to assist exchanges in protecting the identities of their customers in the light of novel protocols.
According to the public announcement, both the companies have partnered in reply to a recent treaty amongst G20 member states, which enforces national businesses to provide details about clients while making funds transfers.
The Travel Rule charted by the Financial Action Task Force (FATF), would have removed multiple secrecy attributes on the exchanges. However, a solution complying with the rule is in the making.
The solution will preserve the secrecy of the users as the duo is striving to provide smart contracts and cryptographic access controls to provide access to private particulars of users.
According to the CEO of CipherTrace, Dave Jevans the crypto controlled privacy has the capacity to provide both obscurity and liable revelation for funds transfers which is helpful in compliance with AMLs.
Similarly, Teana Baker-Taylor, the executive director of industry membership body at the Global Digital Finance stated that the process will be costly as it will need the expansion of some interoperable platform layer and a mediator. Other experts welcomed the rules as a chance to develop novel KYC and AML procedures.
CipherTrace has already partnered with top exchanges like Binance, to mend blockchain safety. Its solutions help banks, agents, and watchdogs for example MFSA.
Associating with Shyft will permit more efficient and well-organized data assembly, which will help in mitigating the security threats associated with customary compliance systems and virtual exchanges.