An announcement disclosed last Monday by Netki, the KYC AML provider purpose built for the unique needs of blockchain companies, ungraded its digital identity service which include two new features, one is the power to break down certificates of a user’s identity into smaller pieces of personally identifiable information (PII) and another one is the ability for senders and receivers of money to request PII from each other, in order to assist cryptocurrency firms recounter tough new international standards against money laundering.
Sharing of individual pieces of identity information among sides is possible because of the allowance of more conversations. The revolution appeared just after the recommendations, which require virtual asset service providers in order to hand over information regarding their customers to each other at the time of transferring funds between firms, issued by FATF or Financial Action Task Force.
The members of FATF are foreseeing to keep practicing through regulation and the organization provides those 12 months. ‘Travel rule’ has already been applied to crypto exchanges.
The form of the new upgrade is known as TransactID, it’s open-source standards encrypt peer-to-pper exchange of identity information between parties prior to transacting, was developed with the U.S. in mind. FATF has applied travel rule to crypto and the product is customizable.
Crackdown of FinCEN
U.S. based FinCEN has just started enforcement actions against VASPs and the piece of information came to our sight through a press release. Top companies in the space told that they have several clients that are undergoing FinCEN enforcement actions related to the Travel rule. With a view to exchanging identity information, TransactID uses X.509 certificates. These standards are valid form of identification. Sender and receiver in a transaction are detected by Netki’s solution. The certificates cost of Netki is around $1 per user or less. The service was built on the Bitcoin Improvement Proposal 75 which is conventional for anyone to use. The service goes with both custodial and non-custodial wallets.