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June 25, 2022
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Tether tests Notabene to fight money laundering

Tether will begin using Notabene, an end-to-end solution to combat money laundering and crime in cryptocurrency transactions.

Notabene is a second-tier blockchain solution designed to apply “Travel rule“. This is an imposition of the Financial Action Task Force (FATF), which aims to apply the same rules to crypto service providers and financial institutions.

Specifically, the travel rule imposes the obligation to obtain, retain and transmit information about the sender and recipient of suspicious transactions. Other obligations include freezing funds and stopping suspicious person transactions.

Tether will begin testing Notabene to become compatible with the “Travel rule” and thus combat money laundering and illegal activities that exploit cryptoactives.

The travel rule also applies to so-called VASPs (virtual asset service providers), that is, entities that facilitate cryptocurrency transactions.

Tether will have to test how to send the necessary information safely. After successful testing, Notabene will be permanently integrated with Tether.

For better transparency in the crypt world.

With the future integration of Notabene, Tether demonstrates its commitment to transparency and legality.

Leonardo Real, CCO of Tether, explains:

“It’s important that we work with other major VASPS to build this industry from scratch. As blockchain technology pioneers and leaders in transparency, we’re dedicated not only to keeping up with the new rules, but also to helping them shape them. Such as “Travel rule” traditionally applies to financial institutions, we see this as an opportune time to promote cooperation between traditional and digital channels in order to create better services for customers around the world. We are proud to lead the work on behalf of all stablecoins to make a positive shift towards protecting our customers.”

Pelle Braendgaard, CEO of Notabene added:

“Tether’s stablecoin has legitimately consolidated its role as a central part of the global crypto industry. Notabene is excited to help Tether bring complianceTravel rule” FATF crypto, in its global network, leading to a more secure and regulatory compliant crypto world”.

Tether, the queen of stablecoins.

It’s no surprise that Tether is among the first cryptocurrency companies to create pioneering solutions to combat crime and money laundering involving cryptoactives.

Tether is the queen of stablecoins, with a capitalization total of nearly $70 billion. It is the most widely used stable cryptocurrency on most exchanges for transactions, as its value is quite similar to the US dollar.

Tether managed to gain investor confidence through transparency. It has been publicizing its reservations for some time. For every USDT minted, there must be one US dollar to support the token. Tether holds cash reserves and other assets and is fully guaranteed. This allowed it to dominate the stablecoin sector, with a capitalization twice that of its direct competitor, USDC.

Source: cryptonomist

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