The BitGo custodial service integrates a tool into cryptocurrency wallets that ensures compliance with the requirements of the financial action task Force (FATF).
BitGo announced that It was the first cryptocurrency wallet operator with a built-in API that will allow you to transmit additional information about users and their transactions. The new BitGo tool aims to increase transparency and compliance with the requirements imposed on virtual asset service providers (VASP). According to FATF requirements, service providers, wallet operators, and exchanges are required to exchange data each time assets are transferred between platforms.
BitGo product development Manager Chris Metcalfe said that BitGo applies the Intervasp Messaging 101 (IVMS101) standard, introduced by the InterVASP group in may. This standard defines a universal model for exchanging data between vasps and their clients (senders and recipients of transactions) for each transaction. Metcalf said that the extended BitGo API is ready to receive relevant information, and customers can provide all the necessary data when sending a transaction request.
Metcalf added that clients should not have technical problems integrating the API. Moreover, customers will not be required to provide data in accordance with the “Travel Rule” principle, if the amount of multiple transactions does not exceed $1000. BitGo management said It did not cooperate directly with FATF, but it has been working with various working groups and regulators for more than a year to ensure compliance with FATF rules.
The FATF published recommendations on virtual assets in June 2019, but the Agency’s order officially came into force last month. At the same time, the organizer of the joint working group on InterVASP messaging standards, siân Jones, believes that all players in the cryptocurrency industry will not soon fully meet these requirements.
In February, the G20 countries called for the rapid implementation of FATF recommendations for regulating cryptocurrencies, so that criminals can not use them to launder money, circumvent sanctions and existing controls.