CipherTrace Traveler is the first commercial product created to help Virtual Asset Services Providers comply with global “travel rule” regulations; Binance is among the first exchanges to deploy it.
Binance today announced that it has deployed CipherTrace Traveler, the leading commercial solution created to enable compliance with global “travel rule” regulations. Traveler is designed to support Virtual Asset Service Providers (VASPs), including cryptocurrency exchanges, custody providers, OTC trading desks, banks and other financial institutions, to achieve compliance with the Financial Crimes Enforcement Network’s (FinCEN) and the Financial Action Task Force's (FATF) travel rule regulations.
Traveler will also support Binance’s compliance commitment to detecting bad actors and preventing their use of the Binance platform, as the industry experiences growing numbers of DeFi hacks and frauds. CipherTrace released Traveler in March 2021. Binance, the leading global blockchain ecosystem behind the world’s largest digital asset exchange, is among the first exchanges to deploy Traveler.
“We are continuing to invest in our compliance program and technology to further strengthen our standards,” said Samuel Lim, Chief Compliance Officer of Binance, “We are proud to partner with CipherTrace to deploy their Traveler compliance solution. As always, we are committed to providing a superior product for our users – one that is secure, decentralized, and meets global compliance standards.”
CipherTrace CEO Dave Jevans said, "We are confident that Traveler will help Binance to continue to meet the highest standards for global Anti-Money Laundering compliance, particularly as regulation of VASPs tightens in jurisdictions around the world. Our product is a solution that enables VASPs to achieve AML compliance without compromising security or operational continuity. We are glad to work closely with Binance and look forward to supporting their business and commitment to global compliance.”
Traveler simplifies the user experience by automatically identifying VASP-to-VASP transfers and recipient VASP by scanning addresses associated with incoming cryptocurrency transactions. Traveler securely verifies the originating VASP and recipient VASP to each other. Traveler ensures that sensitive transaction confirmations are only shared with other Travel Rule-compliant institutions to prevent data leakage and to preserve confidentiality. Additionally, Traveler helps overcome the “Travel Rule Sunrise Issue” by automating the onboarding and validation of new counterparty VASPs, especially those in jurisdictions that have not yet deployed these information sharing regulations.
Traveler is the first commercial Travel Rule Information Sharing Alliance (TRISA.io) solution that performs counterparty VASP due diligence as prescribed by the FATF and issues Know Your VASP (KYV) digital certificates. Vetted VASPs can obtain and review the TRIXO due diligence questionnaire developed by TRISA.
CipherTrace, the leading cryptocurrency intelligence company, bridges virtual currencies and financial services together with fraud protection, anti-money laundering, and financial crime prevention. CipherTrace derives superior cryptocurrency intelligence from analyzing massive amounts of validated blockchain transaction attribution. CipherTrace founders are dedicated to protecting consumer privacy and growing the blockchain economy, while defending against illicit finance. Deep expertise in cybersecurity, eCrime, payments, banking, encryption, and virtual currencies form the foundation for CipherTrace's commercial offerings. For more information, visit CipherTrace.com, subscribe to the CipherTrace Newsletters, and follow us on Twitter @CipherTrace.