Sumsub, a global verification and compliance provider, announced its partnership with crypto exchange Binance to integrate its Travel Rule solution through the Global Travel Rule (GTR) Alliance.

This collaboration aims to facilitate secure cryptocurrency transactions by connecting Binance’s extensive user base of over 183 million with Sumsub’s network of Virtual Asset Service Providers (VASPs), financial institutions, and fintech companies.

The Travel Rule requires VASPs to share the personal information of a transaction’s sender and recipient with other financial businesses or VASPs.

The initiative enhances Sumsub’s Travel Rule compliance services for the cryptocurrency sector by addressing the sunrise issue, a significant challenge where counterparties may not be reachable due to varying adherence to Travel Rule requirements across VASPs.

This partnership is designed to ensure global interoperability, regulatory compliance, and market credibility for streamlined and interconnected cryptocurrency transactions.

Binance, which has been a client of Sumsub since 2021, aims to bolster its international compliance efforts through this alliance.

The collaboration is seen as a move towards aligning with the Financial Action Task Force’s (FATF) global standards and enhancing the security and transparency of user transactions.

Steve Christie, Deputy Chief Compliance Officer at Binance said,

“Global Travel Rule Alliance is an exciting step forward in solidifying our international compliance efforts. We’re particularly enthusiastic about the ability it gives us to consolidate our efforts globally, moving past the challenge of fragmented regional integrations.

This move doesn’t just bring us into alignment with FATF’s global standards – it’s about proactively providing our extensive user base with the assurance that their data and transactions are secure. This alliance amplifies the trust, security, and transparency that our users can expect at Binance.”

Jacob Sever, co-founder and Chief Innovation Officer at Sumsub said,

“Integrating with Global Travel Rule Alliance is a significant milestone for us, underscoring the importance of collaboration in the crypto space. The integration of GTR protocol with Sumsub’s Travel Rule solution is a major advancement in ensuring interoperability and addressing the sunrise issue.

By enabling seamless interaction between members of both ecosystems, this partnership not only enhances the infrastructure of the global crypto ecosystem but also fosters trust both within and outside the industry.”

Sumsub’s “State of Verification and Monitoring in the Crypto Industry 2023” report, based on industry data and surveys, highlights Travel Rule compliance and advanced fraud like deepfakes as top challenges for crypto companies.

Featured image credit: Edited from Freepik

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• Source: https://fintechnews.sg/93777/digitalassets/sumsub-and-binance-to-streamline-travel-rule-compliance-in-crypto-transactions/