Shyft’s new tool – Veriscope – provides a comprehensive solution for previously unsolvable “Sunrise Issue”
Exchanges can now seamlessly, efficiently comply with global AML and sanctions regulations
BRIDGETOWN, Barbados, April 13, 2022 (GLOBE NEWSWIRE) — Shyft Network announced today the launch of Veriscope, a fully decentralized, open-source tool that offers crypto exchanges a comprehensive solution to the so-called “Sunrise Issue” – addressing what has until now been a vexing, unsolvable challenge for crypto exchanges as they come into compliance with the Financial Action Task Force (FATF) Anti-money laundering (AML) Travel Rule.
The “Sunrise Issue” arose in recent years as crypto exchanges across the globe began work to adopt the Travel Rule at different times, resulting in some exchanges coming into compliance with the requirement at different times than their counterparties. The Travel Rule requirements can only be met if all (both) counterparties are in compliance. Regulators have demanded a solution to the issue.
“The ‘Sunrise Issue’ is a complex problem, and only Veriscope has been able to solve it,” said Malcolm Wright, Head of Veriscope. “Governments are deeply concerned about crypto’s use in illicit finance, and sanctions evasion in particular – as they should be – and with Veriscope, we are able to offer an efficient, elegant compliance solution for the entire industry.”
The FATF Travel Rule requires collection and exchange of customer details in order to adhere to international rules against money laundering, sanctions evasion and other malicious activities.
With Veriscope, crypto exchanges can automatically discover which exchange, liquidity provider or custodial wallet is the recipient of crypto assets sent by their customers. Then, Veriscope enables these service providers to transmit the required customer data to each other to ensure that their customers are not involved in money laundering, sanctions evasion, or other illicit activity.
Veriscope enables Travel Rule compliance while protecting customer data through a peer-to-peer data connection that does not store any personally identifiable information (PII), uses encrypted communication, and is the only solution to provide for user consent for data sharing and storage to comply with GDPR regulations.
The industry acclaimed feature comes as major exchanges and liquidity providers including Binance, Deribit, Tether, Huobi, MoonPay, Nexo, Gate.io, Bitfinex, LocalBitcoins, GSR, Galaxy Digital, Coinhako, BTSE Nogle, and more adopt Veriscope as their Travel Rule solution.
“Veriscope is already scaling globally as more and more exchanges understand the comprehensive benefits of the tool,” said Joseph Weinberg, co-founder of Shyft Network and veteran of crypto security and regulatory solutions.
“The tool takes a unique, decentralized approach to identifying counterparty exchanges solely from the crypto address. Because we don’t require any additional information from an exchange’s customers, we can rebuild Travel Rule data on historic transactions. The result is that our client is in full compliance with the Travel Rule, and the customer experience is absolutely seamless, with no interruption to transactions, but offering bulletproof assurances of privacy and security of customer data.”
This came on the back of recent partnership announcements with FIS Worldpay and DLA Piper.
About Shyft Network
Shyft Network ($SHFT) is a public blockchain protocol designed to aggregate and embed trust, validation and discoverability into data stored on public and private ecosystems, and permissioned and permissionless networks. By facilitating bridging across siloed datasets, Shyft allows for layering of context on top of data, ultimately turning raw data into meaningful information.
Veriscope is an open-source, decentralized travel rule solution. Veriscope allows Virtual Asset Service Providers (VASPs) to comply with the FATF Travel Rule, preserve data integrity, maintain data sovereignty and enable a frictionless customer experience. Veriscope has been designed in collaboration with leading global cryptocurrency exchanges.
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