Share this article
Blockchain Solution for FATF 'Travel Rule' to Keep User Data Private
CipherTrace is teaming with Shyft on a blockchain solution to help crypto firms meet tough new standards from the Financial Action Task Force.
Updated Sep 13, 2021, 9:23 a.m. Published Jul 2, 2019, 12:00 p.m.
Make us preferred on Google
Blockchain sleuthing firm CipherTrace is to launch a solution aimed to help cryptocurrency firms meet tough new rules recently recommended by the Financial Action Task Force (FATF), an international money-laundering watchdog.
CipherTrace is teaming up with Shyft, a firm developing blockchain-based identity and attestation platform, on the initiative, which the firms say is planned to enable compliance with the FATF "Travel Rule," while still maintaining user privacy.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Specifically, according to an announcement Tuesday, the firms will build know-your-customer (KYC) and anti-money laundering (AML) ecosystem "in which participating exchanges can securely transfer Proof of Knowledge without disclosing personally identifying information."
FATF announced in late June that it had finalized its recommendations on regulating cryptocurrencies for its 37 member countries.
The new standards included a controversial requirement that “virtual asset service providers,” including crypto exchanges, pass information about their customers to one another when transferring funds between firms. FATF gave member countries 12 months to adopt the guidelines, with a review set for June 2020.
Currently, crypto exchanges lack a compliant way to share KYC data or alert other firms over suspicious activity, according to the release.
To address that shortfall, CipherTrace and Shyft will launch a pilot program to develop a "shared smart-contract and cryptographic access controls" allowing cryptocurrency exchanges to manage access to users' private details.
The ultimate aim is to make KYC and AML "faster, more efficient and open," while maintaining a "high level of privacy." The solution would only reveal identity information when "compelled to do so by legal authorities," the firms said.
CipherTrace CEO Dave Jevans said:
“With cryptographically controlled privacy mechanisms, it is possible to have both anonymity and responsible disclosure of the source of funds for legitimate purposes such as criminal or terrorist investigations and AML compliance. This is the direction that CipherTrace is working on for the future growth of cryptocurrencies globally. We believe that there are technological and regulatory solutions that can preserve privacy while enabling security and compliance.”
Paper people image via Shutterstock
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Fed rates decision, Tesla earnings, Bybit roadmap: Crypto Week Ahead
Your look at what's coming in the week starting Jan. 26.
What to know:
You are reading Crypto Week Ahead: a comprehensive list of what's coming up in the world of cryptocurrencies and blockchain in the coming days, as well as the major macroeconomic events that will influence digital asset markets. For an updated daily email reminder of what's expected, click here to sign up for Crypto Daybook Americas. You won't want to start your day without it.
Top Stories
