Binance joins blockchain-based Shyft Network for FATF Travel Rule Compliance

Crypto exchange Binance announced that it just participated in the blockchain-based Shyft Network to implement its decentralized infrastructure to comply with the Financial Action Task Force (FATF) Travel Rule.

In a press release detailing the partnership, Binance qualifies as Virtual Asset Service Providers (VASPs) and is therefore required by the FATF Travel Rule to share Personal Identifiable Information (PII) and Know-Your-Customer (KYC) data between the qualifying institution when executing transactions for senders and receivers.

Shyft Network offers the first end-to-end decentralized solution to the FATF Travel Rule. Its open-source network solution enables counterparties to establish data-sharing rules and meet multi-jurisdictional requirements to conform to the global compliance standards including FATF Travel rule and other data privacy guidelines. It also ensures that VASPs minimize risk and data leakage while sticking to the Travel Rule.

“Shyft Network was designed to safeguard decentralization and the openness of cryptocurrency networks while simultaneously giving the ability for businesses and users to securely operate in today's regulatory environment. Together, with global partners like Binance, we aim to drive mass adoption while ensuring that safety, security, and openness are maintained for all protocols and participants,” said Co-founder of Shyft Network, Joseph Weinberg.

Binance will be the first to drive the deployment of federated coalitions onto the Shyft Network’s discovery and data-interoperability layers. Through their partnership, Binance and other leading global exchanges can implement infrastructure used in an open coalition ecosystem for compliance with FATF guidelines and other regulatory standards which will accelerate universal regulatory compliance.

“Until now, the industry has not had an existing infrastructure for VASPs to coordinate and comply with the FATF’s new guidelines. Shyft Network’s solution enables VASPs to fully comply with the Travel Rule. The Shyft Network team provides a unique approach in working hand-in-hand with international governments and regulatory bodies--in concert with the network’s established, open-source technology--we believe it is the right solution for ongoing regulatory compliance,” said Chief Compliance Officer of Binance, Samuel Lim.

Advisor to Shyft Network and former FATF Executive Secretary, Rick McDonell, said that the partnership brings the fast-growing industry to the next level when it comes to interfacing with regulators. He encouraged other exchanges to participate in the same network that supports global compliance requirements especially the FATF’s Travel Rule.

Meanwhile, Binance just announced that it would list COTI for free. It has also opened trading for COTI/BNB, COTI/ BTC, and COTI/USDT trading pairs starting Feb. 26

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