Switzerland Conducts First Automated Bitcoin Transaction Compliant with FATF Rules

Swiss-based Crypto Finance AG and Mt Pelerin conducted the first automated Bitcoin transaction in compliance with FATF anti-money-laundering standards and the Swiss regulator FINMA. The software for the operation was supplied by solutions provider 21 Analytics.

First successful automated #bitcoin transaction compliant with the #AML ordinance of #FINMA between Crypto Finance AG and Mt Pelerin. Great thanks to our Partner 21 Analytics. Read the full story: https://t.co/Ue6qfozdU6#cryptocompliance #digitalasset #blockchain

— Crypto Finance (@CryptoFinanceAG) August 21, 2020

To execute a transaction valued at $23 in cryptocurrency, the AI-based 21 Analytics solution, FATF’s OpenVASP system, and ING Bank’s Travel Rule Protocol (TRP) were used. All required information was prepared according to the crypto-industry standard IVMS101 developed by the participants. The parties exchanged sender and recipient data, as is typical for standard bank transfers.

“The transfer was fully automated thanks to the TRP protocol instead of creating and sending a PDF manually for each transaction, as VASPs in Switzerland had done before,” said Lukas Betschart, founder and CEO of 21 Analytics.

Travel Rule is a set of FATF guidelines obliging virtual asset service providers (VASPs) to follow AML and CFT procedures, in line with traditional financial firms. Data must be compiled for all transactions exceeding $1,000.

Earlier in July, custodian-solutions provider BitGo unveiled a Travel Rule compliance solution embedded in wallet APIs.

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