This comes as a requirement exchanges face as part of new anti-money laundering (AML) rules. In order to fall in line with the rest of the financial system, virtual asset service providers (VASPs) have been asked to obtain, hold and exchange information about the originators and beneficiaries of transactions, known colloquially as the ‘Travel Rule’.
Global anti-money laundering watchdog, the Financial Action Task Force (FATF) expects the crypto industry to implement the new rule by June 2021.
The response from the crypto industry has been enthusiastic, including a widely agreed-upon standard for the format of the data payload VASPs must share (known as the InterVASP messaging standard, or IVMS101), as well as a number of technical solutions focused on how best to implement the rule currently being built by crypto firms, banks and consortia.
Less attention has been given to how all this additional customer data should be stored. BitMEX’s Travel Rule Data Storage Principles focus on things like access management, encryption standards and keeping Travel Rule data separate from other operational customer data.
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