Stablecoin issuer Tether is taking steps to be more compliant with global crypto regulations.
Tether announced on Tuesday that it has begun a trial partnership with Notabene, a digital identity startup that provides know-your-customer (KYC) infrastructure to crypto exchanges, to help it comply with the Financial Action Task Force (FATF)’s “travel rule,” which requires financial institutions to exchange KYC information for both senders and recipients of relevant transactions.
The Paris-based global, money-laundering watchdog’s guidelines for crypto compliance have expanded to include exchanges and stablecoin issuers, which it calls virtual asset service providers, or “VASPs”.
Tether’s trial partnership with Notabene comes as the stablecoin issuer wrestles with probes and lawsuits from regulators over its financial backing, and accusations from the crypto community that it has not been transparent.
According to Tether Chief Compliance Officer Leonardo Real, the partnership with Notabene is meant to help Tether improve its global regulatory compliance and transparency, as well as to improve its products.
“As pioneers of blockchain technology and leaders in transparency, we are dedicated to not only keeping up with new rules but helping shape them,” Real wrote in a press statement.
He added: “Because the Travel Rule traditionally applies to financial institutions, we see this as an opportune moment to foster cooperation across traditional and digital channels in order to create better services for customers globally.”