Recent announcements by the international Financial Action Task Force (FATF) regarding guidelines for Virtual Asset Service Providers (VASP) as well as the strict application of KYC/AML requirements for regulated service providers dealing digital assets by the Swiss Financial Market Supervisory Authority (FINMA) have put a renewed focus on the compliance aspect of doing business with crypto and digital assets.
These developments demonstrate both the growing interest with which international regulators are treating the nascent crypto financial industry and also the mounting technical and logistical challenges which face companies in the space.
In particular, the so-called “travel rule” for the exchange of information about transacting parties between VASPs, introduces a new layer of complexity for crypto finance companies.
As a leading service provider and integral member of the worldwide crypto community, with over 6 years of experience in crypto financial services, Bitcoin Suisse proposes the development of a common, open technology protocol to help facilitate compliance with the FATF’s travel rule for Virtual Assets (VA). The protocol would be based on a set of principles which would allow it to be used by VASPs around the world, regardless of jurisdiction or blockchain technology used and without membership or registration with a centralized third-party.
The proposal was outlined yesterday in a presentation by Bitcoin Suisse Head of Risk Management, David Riegelnig, at the VASP information event at the University of Zurich hosted by the Crypto Valley Association, where representatives from the Swiss State Secretariat for International Finance (SIF) were also present.
More details on the protocol’s guiding principles are available to read here.
As a first step towards realizing this project, Bitcoin Suisse is pleased to coordinate its work with partners and its wider network in the crypto community and among other international VASPs.
