- FATF Recommendation 16 states that exchanges must share personal information with counterparties.
How does CoolBitX ensure that personal information and other data remain private and hack-proof?
Who stores the transmittal information?
Both VASPs are required to store information in each transfer request.
Originator VASPs should store the beneficiary user information provided by the originator user and the Travel Rule Compliance Certificate provided by the beneficiary VASP.
Beneficiary VASPs should store the originator user information provided by the originator VASP.
FATF Recommendation 16 states that exchanges must share personal information with counterparties. How does CoolBitX ensure that personal information and other data remain private and hack-proof?
Sygna uses top-level cryptographic encryption to ensure personal information sharing remains private and secure.
During the registration, VASP members must generate a key pair of private and public keys to manage their data transmittals. The Sygna Bridge design requires the originator VASP to encrypt personal information using the beneficiary VASP’s public key.
This ensures only the corresponding VASPs can access personal information. No third party, Sygna Bridge included, can access the privacy data during the information-sharing process.
How many currencies and programming languages do you support?
Sygna is an off-chain solution that supports over 4,000 currencies including most of the publick blockchain, ERC-20 tokens, Tron and Omni tokens, except privacy coins and technically can support all the asset types.
Why should VASPs use Sygna?
To comply with the FATF Recommendation 16, Originator and Beneficiary VASPs will have to overcome a lack of native ownership attribution features in blockchain technology and find a way to share data with counterparties without breaking privacy laws or compiling inaccurate data.
They will need to be able to identify each other and distinguish between a VASP and an individual crypto trader and ensure that whatever solution they employ keep cryptocurrency transmittals quick and low-cost despite sizable linguistic, jurisdictional and time zone barriers between VASP counterparts.
The FATF jurisdictions are currently considering and developing various solutions to implement Recommendation 16’s requirements and remain compliant. This means that on a country-level, VASPs will be subjected to higher domestic regulatory pressure and more comprehensive Know-Your-Customer (KYC) standards to prove that they’re compliant with FATF’s guidelines.
VASPs and financial institutions that fail to meet their country’s requirements could expect punitive measures that prohibit them from operating on profitable global markets, opening traditional banking accounts, or forces them to shut down altogether, as can already be witnessed in South Korea.
Thus, it will be in the best interests of VASPs to utilize a secure and reliable service like Sygna. Benefits of Sygna: Timely Implementation Turn compliance into a competitive advantage. Integrate with our API and alliance network within 4~6 weeks, without disrupting your day-to-day business.
By using Sygna, Cost-effective compliance Compliance with Recommendation 16 does not necessitate a reinvention of the wheel. Share the right information with the right parties in a standardized format at economical rates.
Flexible simplicity Simple one-time integration is all it takes to connect you with our growing VASP network that supports all virtual asset types. Our flexible technology can adapt to regional differences and future regulatory changes. Secure and Reliable Data Keep your data secure and off-chain.
Sygna encrypts your Personally Identifiable Information (PII) with the VASP counterpart’s public key so that only the specified VASP counterpart can decrypt your Personally Identifiable Information. We never collect or access any private data.
What is Sygna Bridge?
Sygna Bridge is a “Crypto Travel Rule” compliance solution. Our first-to-market messaging network which helps virtual asset service providers (VASPs) share transmittal data with counterparties securely and accurately to meet their national regulatory requirements as mandated by the FATF Recommendation 16.
Sygna acts as a compliance layer and global database for all virtual asset service providers, without collecting or accessing any private data. It works with all virtual assets. The easy-to-integrate API creates an encrypted and private communication tunnel between VASP counterparts to share originator and beneficiary data for any virtual asset transaction.
Each VASP in the network is issued a unique identity shortcode after passing a compliance check, which helps exchanges to identify each other when transacting, verify the origin of transactions and choose whether to accept or reject any incoming transmittals.
The process is automated and every message sent between VASPs is paired with a corresponding signature to ensure data integrity. Sygna Bridge’s technology is considered unique as it connects VASPs with minimum disruptions to their business model at a very low cost, and provides the highest security standards for connections in HTTPs SSL certificates, API key and private data encryption.
What Sygna offers to the industry?
– Minimizes the regulatory impact and avoid adoption barriers, by being quick and painless to integrate.
– Affordability to implement, to accommodate smaller VASPs, and keep technological innovation alive.
– Establishes a global standard for virtual asset transmittals that can be used by all VASPs and applies to all virtual assets.
– Adheres to regulatory parameters, be adaptable to regional frameworks, and be flexible enough to accommodate future regulations.
– Provides a timely implementation with VASP platforms.
– Complements law enforcement activities to build cases against money launderers, terrorists, and other serious financial crime suspects.
– Generates reliable data by verifying the integrity of shared information.
– Proactively detect suspicious activities and the true origin of incoming transmittals.
– It is scalable, maintainable, and reliable, around the clock.
– It garners significant industry support and widespread VASP adoption.
I am interested in the Sygna, what is the next step?
To find out more about this innovative Recommendation 16 network for VASPs, please contact [email protected].
How does Sygna work?
We’ve made a complete diagram with guide for your reference.
Please check in below link
For further information: Developer.sygna.io