- The Swiss fintech Mt Pelerin together with the 21 Analytics and Crypto Finance AG has completed the first automatic Bitcoin transaction in compliance with the FATF rule.
- The transaction was completed on August 20th between Crypto Finance AG and Mt Pelerin.
In a press release, fintech Mt Pelerin announced that it has conducted the first automatic transaction with Bitcoin in compliance with the Travel Rule of the FATF, together with the Swiss firms 21 Analytics and Crypto Finance AG, an authorized intermediary. The transfer worth 21 million CHF (around $23 million) was completed on August 20th of this year between the latter company and Mt Pelerin. 21 Analytics provided the software and the other necessary decentralized protocols supporting the transaction.
The Financial Action Task Force (FATF) is an intergovernmental organization with a global reach, which introduced the Travel Rule and which applies to all FATF member countries. With the help of the rule, the partner countries try to combat money laundering across national borders. FATF member countries include Switzerland, Germany, France, Spain, Peru, Bolivia, Belgium, Albania, Argentina, Cuba, Denmark, Egypt and many others.
Through the adoption of the Travel Rule, cryptocurrency providers (Virtual Asset Service Providers)in these countries are obliged to demand know-your-customer and anti-money laundering compliance information. These include detailed information on the originator and beneficiary for transactions above $1,000.
Overcoming obstacles on the adoption of Bitcoin
According to the statement, the Travel Rule has become an obstacle for the crypto industry and blockchain technology. This is because transactions with cryptocurrencies such as Bitcoin are not designed to provide the required KYC information.
This is why service providers were obliged to include the information for each transaction. However, this considerably reduces the scalability of services. With the solution developed by 21 Analytics, according to the statement, transactions will be made automatically using the OperanVASP protocol, the Travel Rule protocol and the InterVASP message standard. 21 Analytics’ CEO, Lucas Betschart, stated the following:
The speedy implementation of the FATF Travel Rule by financial intermediaries demonstrates the competence with which the Swiss Crypto Ecosystem is taking the lead.
Crypto Finance AG CEO Jan Brzezek was also pleased with the results of the transaction. Brzezek said that the global adoption of crypto assets requires an international standard as well as the technology and processes to comply with it. He added:
We are pleased that this could be implemented in record time. All players now have the legal certainty they need in order for crypto assets to become an important alternative asset class.
This live demonstration shows once again that crypto assets and regulatory compliance are compatible through practical solutions, which is one of the key focus of our tokenisation technology. As one of the first Swiss VASPs to be travel-rule compliant, we are proud to be part of this demonstration.