2024-10-08 18:34:00
VerifyVASP, a leading provider of virtual asset compliance solutions, has achieved key milestones in the implementation of the Travel Rule: Since its launch in 2022, $200 billion in verified transfers have been processed with 10 million successful verifications. The Travel Rule is an AML/CFT regulatory requirement that requires financial institutions and virtual asset service providers (VASPs) to disclose and verify certain user information when transferring funds or virtual assets.
Elsa Madrolle, GM at EMEA, comments:
“That’s $200 billion in virtual assets consistently reaching intended, verified counterparties, whereas other implementations don’t get every message answered. We have an average verification success rate of 92%, so our members report increased user trust. Ahead of implementation in the EU, we can show that the Travel Rule can be implemented on a large scale while improving the user experience.”
To achieve these milestones, VerifyVASP has developed a range of solutions that verify the identity of all parties – both Virtual Asset Service Providers (VASP) and end users – before transfers and deposits. A fully decentralized peer-to-peer protocol ensures immediacy and security. These solutions are capable of screening organizations that are or are not subject to the Travel Rule. The respective legal basis is taken into account and a key challenge of the Sunrise problem is addressed.
At a time when fraud and illegal activities, both virtual and traditional, are reaching new levels, effective implementation of the Travel Rule is already reducing some of these risks. As VerifyVASP members report, fake identity scams reported by their users have almost disappeared.
The Travel Rule implementation has a significant impact on users: the new requirements bring some changes to the user experience, but also provide confidence in using compliant VASP members for transfers if implemented correctly.
As the implementation deadlines get closer in various countries and EU member states, VerifyVASP’s successes show that correct implementation of the Travel Rule does not just mean compliance with the regulations, but is an important factor in building a safe and prosperous ecosystem.
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Information about VerifyVASP Pte. Ltd: VerifyVASP is a decentralized messaging protocol for Travel Rule compliance supported by regulated VASPs. VerifyVASP offers comprehensive Travel Rule solutions that include counterparty due diligence, messaging protocol, on-chain risk analysis, and consulting services on Travel Rule requirements and personal data protection. VerifyVASP, headquartered in Singapore with offices in Tokyo and Paris, expects accelerated network growth and an increase in verifications.
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