SAN FRANCISCO, April. 5, 2022 /PRNewswire/ — AnChain.AI, a blockchain security company that specializes in AI-powered platforms and GlobaliD, the industry-leading self-sovereign identity provider, today unveiled a new technical framework that carves out a path toward regulatory compliance for service providers interacting with non-custodial wallets. The framework tackles Travel Rule compliance for non-custodial offerings including decentralized finance or DeFi.
Called PRIVATE (for Privacy Preservation through Resolution of Identity via Verification and Attestation for Travel Rule CompliancE), the framework addresses the Financial Action Task Force’s (FATF) updated recommendations released on October 28, 2021, which encompassed DeFi, NFTs, stablecoins, and wire transfers. In particular, recommendation 179c updated guidance on non-custodial wallets.
According to FATF’s recommendations, Virtual Asset Service Providers (VASPs) are required to collect customer information for virtual asset transfers and enforce anti-money laundering (AML) rules like sanction screening and transaction monitoring.
Several frameworks have been proposed to enable VASPs to exchange relevant information for custodial offerings—including the recently announced TRUST platform from Coinbase, Fidelity, and other industry players—that require bilateral data transfers. The PRIVATE framework complements these potential solutions by incorporating non-custodial wallets, providing a holistic approach to web3 compliance.
In PRIVATE, AnChain.AI and GlobaliD have developed a privacy preserving technical framework that allows VASPs to verify customer authorization without revealing a wallet owner’s underlying data, providing the first pathway toward Travel Rule compliance for non-custodial offerings.
AnChain.AI and GlobaliD have now begun development of an end-to-end solution leveraging the PRIVATE framework that VASPs like financial institutions and cryptocurrency exchanges will be able to employ for Travel Rule compliance.
“AnChain has brought security and compliance solutions to the blockchain industry for years,” Francesco Piccoli, Director of Product at Anchain.AI, said. “Some of the new recommendations from FATF introduce new complex challenges for companies in the web3 space. We’re proud to partner with GlobaliD to present a technical framework addressing those challenges and bring new solutions to market together.”
“GlobaliD believes that the future of digital identity for web3 will allow privacy for consumers while enabling compliant financial services, making the ecosystem efficient and safe for all parties involved,” said Vadim Slavin, GlobaliD Director of Credentials Platform. “PRIVATE brings this future one step closer. Privacy and regulatory compliance no longer have to be two contradictory terms.”
The PRIVATE white paper is available for download: privateframework.com. Technology providers interested in contributing to the development of the PRIVATE framework should reach out to GlobaliD and AnChain.AI: [email protected]
GlobaliD is a trust platform that seamlessly integrates digital identity, communications, and payments — the core building blocks for the next chapter of the internet. Unlike existing offerings, GlobaliD’s open, portable, and interoperable solutions put individuals back in control of their digital lives rather than governments or corporations, while allowing developers and businesses to easily take part in building the future. GlobaliD has offices in the U.S. and Europe and its digital identity framework has been recognized by the World Economic Forum and the Brookings Institute.
AnChain.AI is an AI-powered cybersecurity company enhancing blockchain security, risk, and compliance strategies. AnChain.AI, San Jose, California, was founded in 2018 by cybersecurity and enterprise software veterans from FireEye and Mandiant. Backed by both Silicon Valley and Wall Street VCs, and selected in the Berkeley Blockchain Xcelerator, the company is trusted by 100+ customers from over 10+ countries in these sectors: VASPs, financial institutions and government, including the SEC (Securities and Exchange Commission). Featured by CBS News, MIT Tech Review, Coindesk and DEFCON, AnChain.AI’s AML engine screens over $1 billion in daily crypto transactions