First automated, regulatory compliant Bitcoin transaction between CH financial intermediaries

A start-up from Crypto Valley enables the first automated transaction of Crypto Assets between two financial intermediaries in Switzerland, in compliance with the Money Laundering Ordinance of the Swiss Financial Market Supervisory Authority FINMA.

In June 2019, the FATF, the global supervisory authority for money laundering, published its guidelines for handling virtual currencies. These include the “Travel Rule”. This recommendation, introduced in 2012, requires the exchange of client data between financial intermediaries.

Facts FATF “Travel Rule

The Financial Action Task Force (FATF), an intergovernmental organisation based in Paris delivered its recommendations on 21st June with regard to the fight against money laundering and the financing of terrorism using virtual currencies. In the future, so-called “virtual asset service providers (VASPs)” are to operate in accordance with the issued guidelines. The recommendations are strongly based on the regulation of traditional banking business. Under the so-called “Travel Rule”, transfers over USD 1,000 must contain information on the sender and the recipient. This information must be passed on to the receiving financial institution.

Regulatory compliant Bitcoin transactions between Swiss financial intermediaries

The new software launched by the Zug-based Startup 21 Analytics AG enables financial intermediaries and other Virtual Asset Service Providers (VASPs) to implement the FATF Travel Rule via the OpenVASP protocol and the Travel Rule Protocol (TRP) in compliance with FINMA. In the case of transactions involving crypto assets, this is used to exchange data between financial intermediaries to identify the ordering party and the beneficiary, as is already the case with bank transfers. This ensures the effective combating of money laundering and terrorist financing. The Bitcoin transaction took place between Crypto Finance AG and Mt Pelerin.

Crypto Finance AG and Mt Pelerin thus enable their customers to carry out fast and legally compliant transactions of Crypto Assets between financial intermediaries. By using the software of 21 Analytics and its support of decentralized protocols, they are making a statement for a global open ecosystem, in which the Swiss Crypto Valley is at the center of the Blockchain innovation.

“The rapid implementation of the FATF Travel Rule by the financial intermediaries demonstrates the competence and the lead of the Swiss Crypto Ecosystem”. – 21 Analytics CEO Lucas Betschart

Crypto Finance AG CEO Jan Brzezek explains: “The global adoption of Crypto Assets requires an international standard and the technology and processes to comply with it. We are pleased that both could be implemented in record time. This gives all players the legal certainty they need to make Crypto Assets an important alternative asset class”.

“This live demonstration shows once again that Crypto Assets and regulatory compliance through practical solutions are compatible, which is one of the main focuses of our tokenization technology” – Arnaud Salomon, CEO of Mt Pelerin.

About 21 Analytics

21 Analytics is a provider of Crypto Asset Compliance solutions for financial intermediaries, led by veterans of the crypto industry and based in Zug. The company offers artificial intelligence-supported software for FINMA-compliant implementation of the FATF Travel Rule for the transfer of crypto assets between financial intermediaries.

About Crypto Finance AG

The Crypto Finance Group offers institutional and professional investors products and services that are world leaders in the crypto-asset sector. The Group comprises the holding company Crypto Finance AG, based in Crypto Valley in Switzerland, and the three operating subsidiaries: Crypto Fund AG, the first FINMA-approved asset manager for crypto assets; Crypto Broker AG, which is active in 24/7 trading of crypto assets; and Crypto Storage AG, which provides infrastructure and tokenization solutions for crypto assets.

About Mt Pelerin

Mt Pelerin is a Swiss FinTech company specializing in asset tokenization and digital compliance. They try to build a bridge between a tokenized and traditional financial world with solutions developed by them. In the future, this project is to become a fully-fledged institution for the democratization of tokenized finance and other investment products.

*Originally published in German at CVJ.ch

About the Author

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The CVJ editorial team consists of crypto experts, active in different areas around the blockchain technology. In cooperation with selected authors, CVJ.CH provides a high-quality resource around the distributed ledger technology. Independent and up-to-date reporting according to journalistic standards as well as educational content around the topic blockchain, rounds off the offer. 

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