US cryptocurrency exchanges will launch a user data exchange solution to meet the requirements of the Financial Action Task Force on Money Laundering (FATF), reports The Block.
Coinbase was the initiator of the creation of the working group. The group will include major US regulated exchanges including Gemini, Kraken, and Bittrex. The solution is intended to increase the level of compliance with the so-called “travel rule”.
The launch of the project was announced by Coinbase Compliance Director Jeff Horowitz during an online conference, promising to publish a whitepaper within a few weeks. Representatives of Gemini and Bittrex confirmed their participation in the development of the initiative.
Horowitz noted that the data exchange system will be built on a P2P model and will operate through a centralized panel. The system will allow participants to request information about any wallet in order to identify the owner. In the future, the working group will consider adding new members outside the United States to the system.
Recall that in May, participants in the crypto industry presented an acceptable data exchange standard for FATF.
Last week, it was revealed that the IRS will use Coinbase’s transaction tracking analytics software. Coinbase recently released its software to the US Secret Service, which reports to the Department of Homeland Security.