Scorechain, the leading blockchain analytic and crypto compliance solution provider, has partnered with Qredo, a decentralized digital asset management infrastructure, and product suite, for a Travel Rule compliance solution.
What is the Travel Rule?
The Travel Rule requires virtual asset service providers (VASPs) to share identifying information from senders and recipients of domestic crypto transactions, such as names, addresses, and ID documentation. More specifically, for each transaction, the origin VASP must share data about the sender with the destination VASP and the destination VASP must share data about the receiver with the origin VASP.
In its updated guidance from October 2021, FATF includes additional businesses in its definition of VASPs. Companies providing any of the following services to customers are within the scope of the guidance:
- “Exchange between virtual assets and fiat currencies;
- Exchange between one or more forms of virtual assets;
- Transfer of virtual assets; and
- Safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets;
- Participation in and provision of financial services related to an issuer’s offer and/or sale of a virtual asset.”
How Qredo helps VASPs comply with the Travel Rule
Regulators are actively starting to implement the Travel Rule for VASPs, with 29 jurisdictions adopting relevant Travel Rule regulations, according to FATF’s latest 12-month review. It is, therefore, time for VASPs to begin implementing processes and tools to prepare for Travel Rule regulations to roll out in their jurisdiction.
Qredo Travel Rule Compliance minimizes the regulatory burden by directly binding metadata to transactions, creating packets that can be automatically processed according to compliance frameworks without the need for cumbersome reconciliation.
Qredo is a decentralized digital asset management infrastructure and product suite designed to unlock new opportunities for institutional investors in digital assets and decentralized finance. Qredo’s Layer 2 blockchain protocol enables users to seamlessly transfer and settle BTC, ETH, and ERC-20 tokens. Assets are secured by Qredo’s advanced Gen 2.0 multi-party computation (MPC), which provides tier-1 bank security and institutional-grade governance.
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Contact: Matthew Neill, Qredo, firstname.lastname@example.org
Scorechain is a Risk-AML software provider for cryptocurrencies and digital assets. As a leader in crypto compliance, the Luxembourgish company has helped over 200 customers in 40 countries since 2015, ranging from cryptocurrency businesses to financial institutions with crypto trading, custody branch, digital assets, customers onboarding, audit and law firms, and some LEAs.
Scorechain solution supports Bitcoin analytics with Lightning Network detection, Ethereum analytics with all ERC20 tokens and stablecoins, Litecoin, Bitcoin Cash, Dash, XRP Ledger, Tezos, and Tron with TRC10 and TRC20 tokens. The software can de-anonymize the Blockchain data and connect with sanction lists to provide risk scoring on digital assets, transactions, addresses, and entities. The risk assessment methodology applied by Scorechain has been verified and can be fully customizable to fit all jurisdictions. 300+ risk-AML scenarios are provided to its customers with a wide range of risk indicators so businesses under the scope of the crypto regulation can report suspicious activity to authorities with enhanced due diligence. In this regard, Scorechain and Qredo join as partners to find the best travel rule solution.