Bitcoin exchange Binance has joined the Global Travel Rule (GTR) Alliance. The platform provides infrastructure to comply with the recommendations of the FATF.
According to a statement, this “strategic step” aims to enhance regulatory compliance and strengthen data security.
The Travel Rule, known as Recommendation 16 of the Group, requires the VASP to share client information when processing crypto transactions that reach a certain threshold—$1000/€1000. The disclosed data includes the sender’s and recipient’s name and address, as well as account details.
The rules were introduced in 2019.
GTR provides a solution for data verification and transmission in a cryptographically secure manner.
“Joining GTR is a significant step forward in strengthening our global compliance efforts. […] This alliance enhances the trust, security, and transparency that users can expect from us,” said Binance’s Deputy Chief Compliance Officer Steve Christie.
In June 2023, FATF expressed dissatisfaction with the pace of Travel Rule implementation. However, according to a PwC report, out of 42 countries examined in the study, only Uganda and Turkey have taken no initiatives to implement the organization’s recommendations regarding the crypto industry.
In the United States, a consortium of leading industry companies such as Coinbase and Gemini presented a plan for FATF compliance in 2020.
In November 2023, Binance founder Changpeng Zhao pleaded guilty to failing to maintain an effective anti-money laundering program as the head of the company. As part of an agreement with the US Department of Justice, he agreed to pay a $50 million fine and step down as CEO.
As reported, the sentencing of Zhao is scheduled for April 30. He faces up to 18 months in prison, although earlier discussions mentioned a 10-year term.