Bybit joins VerifyVASP to comply with FATF’s Travel Rule
“Transparency is one of the core values at Bybit. And VerifyVASP gives us the data solution and technology to implement it at scale.”
Bybit has joined the VerifyVASP Alliance to streamline compliance with the Travel Rule requirements in a manner that also complies with personal data protection requirements.
The exchange will thus bring cryptocurrency transactions on its platform to comply with the Financial Action Task Force (FATF)’s guidance.
Bybit’s 6 million registered users stand to benefit from the compliance boost as it also means more safety for everyone and potential for mass adoption of cryptocurrencies.
Bybit tackling money laundering and terrorist financing
The move is set to strengthen anti-money laundering (AML) effectiveness by enhancing compliance standards at the infrastructure level.
Bybit will contribute to the data quality and validation efficiency of the decentralized protocol for secure information sharing between VASPs in the network.
Compliance with the Travel Rule via VerifyVASP is blockchain technology’s answer to risk mitigation of anti-money laundering and counter terrorist financing.
Igneus Terrenus, Head of Communications at Bybit, said: “Bybit is committed to growing our footprint with a principled approach to financial risks and regulatory compliance. To better serve our community we need to place checks and protections that make sense, and to make crypto more accessible for honest users, which is the vast majority of digital asset holders.
“Cross-border rules for the protection of legitimate finance were designed to prevent exploitations in the international financial system, and we welcome organic crypto-native solutions to fast-track regulatory compliance in the crypto space. Transparency is one of the core values at Bybit. And VerifyVASP gives us the data solution and technology to implement it at scale.”
VASPs are required to become better custodians and transmitters of information under the Travel Rule and compliant centralized exchanges (CEX) will play an increasingly pivotal role in crypto’s transition to mass adoption.
Earlier this year, crypto exchange Bybit completed the integration of Arbitrum One mainnet, a scaling solution for the Ethereum network developed by Offchain Labs.
With this integration, Bybit users can now deposit and withdraw Ether (ETH), Tether (USDT) and USD Coin (USDC) on the Arbitrum network at a reduced transaction cost.
The integration of Arbitrum rollup protocol, which runs on an off-chain Ethereum contract, means lower costs as compared to the Ethereum mainnet. Previously, Bybit traders had to move funds from Arbitrum to Ethereum using the Arbitrum bridge.
Bybit has a long-standing reputation in cryptocurrency derivatives trading. The Singapore-based exchange accounts for $7 billion in 24-hour volumes. That share of the market puts Bybit just behind four global derivatives exchanges.
As part of the expansion of its retail-focused services suite, Bybit has also announced the grand opening of their cloud mining solutions. As the first entry to Bybit’s ByFi product portfolio, the cloud mining offers a chance for crypto enthusiasts to mine ether without having to pay hefty upfront costs or purchase expensive mining hardware.