BitGo, one of the world’s largest Bitcoin Transaction Processors (BTC), is integrating a new API into its crypto-monitoring service to support the Financial Action Task Force’s travel rule.
BitGo told Cointelegraph on July 14 that the company is the first wallet service to provide an internal API solution for the FATF Anti-Money Laundering (AML) regulations, known as the „travel rule.
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Specifically, BitGo is now expanding its API endpoints to allow its customers to transfer additional transaction-related data required under the new standard. In an effort to provide more transparency, the new tool is expected to allow the exchange of data on transaction originators and beneficiaries, as well as establish BitGo as a compliant Virtual Asset Service Provider (VASP).
Chris Metcalfe, BitGo’s senior product manager, told Cointelegraph that the BitGo API now accepts a subset of the InterVASP IVMS101 standard. Launched by InterVASP in May 2020, the new standard enables a universal common language for communication of required originator and beneficiary data between VASPs.
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The new API is „relatively light“
Metcalfe said that the deployment of the extended APIs means that the BitGo API is ready to start receiving and recording the necessary data. BitGo customers now have the option of checking this feature by sending this additional data in their transaction requests to the BitGo platform. Metcalfe noted that API integration is currently offered to customers on a voluntary basis.
Metcalfe noted that BitGo customers are already familiar with the API tools, adding, „The integration effort required by our customers is relatively light, as they simply need to add a little more information about the sender in the transaction requests they are already making.
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Additional data APIs include transactions greater than $1,000
As part of the development, the extended API will transfer data involving transactions in excess of $1,000, as required by the Travel Rule. BitGo’s Metcalfe clarified that a VASP would not be required to submit trip data for multiple transactions of less than USD 1,000.
According to Metcalfe, BitGo has not been „too involved with the FATF directly“ in terms of development, but has been collaborating on travel rule solutions with various working groups and regulators for about a year.
The so-called „travel rule“ represents a set of FATF guidelines for cryptomony-related companies to adopt a series of anti-money laundering and „Know Your Customer“ measures. Introduced by the FATF in June 2019, the Travel Rule aims to prevent the misuse of virtual assets by criminals and terrorists.
While the travel rule’s deadline came in June 2020, Siân Jones, convenor of the InterVASP Joint Working Group on Messaging Standards, called the deadline „a myth,“ adding that it could take years for 200 nations to adapt the FATF’s requirements in their entirety.