Tether to test digital identity service to meet FATF standards

The issuer of the stablecoin USDT, Tether, announced testing of a digital identity solution from Notabene.

In order to assist cryptocurrency exchanges, digital wallet providers, and financial institutions with the new FATF Travel Rule requirement, #Tether will begin testing the Notabene platform.⬇️https://t.co/9gUpq15As6

— Tether (@Tether_to) October 26, 2021

The solution will enable virtual asset service providers (VASPs), including cryptocurrency exchanges and wallet operators, to comply with FATF guidelines. 

“Tether will begin testing Notabene to combat money laundering and crime in cross-border transfers,” the company said.

Tether’s Chief Commercial Officer Leonardo Real said the collaboration with Notabene provides an opportunity to meet regulators’ requirements and improve the quality of services offered.

“Since the FATF Travel Rule is typically applied to financial institutions, we see this as an appropriate moment to forge cooperation across traditional and digital channels to create a better service for customers worldwide,” said a senior executive.

If the testing is successful, Tether will integrate the solution.

In June 2019, FATF decided to require Bitcoin exchanges and other VASPs to comply with anti-money laundering and counter-terrorism financing rules, in line with traditional financial institutions.

Later, FATF President Marcus Pleyer said there is a need to adjust the guidelines for the crypto industry, as many countries have not fully implemented the standards adopted earlier.

In Octoberpresented a plan for its members to comply with FATF requirements.

In March, the Group proposed amendments to the guidelines for the cryptocurrency industry. In particular, experts clarified the wording of decentralized exchanges and the mechanisms that underpin the operation of platforms and applications.

In October the FATF completed development of the guidance. It explains how regulator requirements apply to stablecoins and does not introduce new standards for VASPs and the industry at large.

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