BitGo, the major digital asset firm, announces API support for the Financial Action Task Force’s (FATF) travel rule.
On July 14, it has been reported that the company is the first wallet service to provide an in-house API solution for the FATF’s Anti-Money Laundering (AML) regulations, known as the “travel rule.”
However, BitGo is now extending its API endpoints to enable its clients to transfer additional transaction-related data required under the new rule. Intended to provide more transparency, the new tool is expected to enable the exchange of data about transaction originators and beneficiaries as well as establish BitGo as a compliant Virtual Asset Service Provider (VASP).
Chris Metcalfe, the Senior Product Manager at BitGo, said that BitGo’s API now accepts a subset of InterVASP’s IVMS101 standard.
Released by InterVASP in May 2020, the new standard enables a universal common language for communication of required originator and beneficiary data between VASPs.
.@BitGo to become the first #crypto wallet provider to support the FATF’s travel rule by extending API endpoints https://t.co/P2hzoSB7vA — Cointelegraph (@Cointelegraph) July 14, 2020
Metcalfe said that the rollout of extended APIs means that BitGo’s API is ready to start receiving and recording the necessary data, as BitGo clients now have the option to check out this feature by submitting this additional data in their transaction requests to the BitGo platform.
He also noted that the API integration is currently offered to clients on a voluntary basis.
Metcalfe added:
“The integration effort required by our clients is relatively light, as they simply need to append slightly more information about the sender in the transaction requests they are already making.”
As part of the development, the extended API will transfer data involving transactions greater than one thousand dollars, as required by the travel rule.
Likewise, Metcalfe clarified that a VASP would not be required to submit travel data for multiple transactions below $1,000.
According to Metcalfe, BitGo has not been “too involved with FATF directly” regarding the development but has been collaborating on travel rule solutions with a number of working groups and regulators for about a year.
As per the report, “travel rule” represents a set of FATF guidelines for crypto-related firms to adopt a number of AML and Know Your Customer measures.
Thus, as introduced by the FATF in June 2019, the travel rule aims to prevent criminal and terrorist misuse of virtual assets.
Source: Cointelegraph | Image: Pixabay