AUSTRAC Testing Blockchain to Automate Fund Transfer Messages
- The Australian agency is responsible to oversee the domestic crypto exchange.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) is testing the usage of Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term to automate fund transfer instructions.
As reported by ZDNet on February 24, the financial intelligence agency has teamed up with Swinburne University of Technology to build a blockchain-based prototype to test the potential of smart contracts helping multiple actors automate their international fund transfer instructions (IFTIs) reporting to Austrac. Banks, remitters, and casinos fall under AUSTRAC’s category of reporting entities.
The report also detailed that the proof-of-concept (PoC) between AUSTRAC and the university commenced in December last year and is expected to last for around 12 months.
Moreover, apart from blockchain, the Australian agency is also exploring other technologies to automate IFTI reporting.
AUSTRAC’s partnership with the university was set in motion as Swinburne last month launched a global Blockchain Centre of Excellence along with IT consultancy firm Capgemini. According to the university, the center “will focus on advancing blockchain technologies, platforms, assets and systems to develop industry understanding and implementation of blockchain technologies.”
“We see this technology as the key digital innovation platform supporting global supply chains, intellectual property, and trade across a range of industry sectors in the future,” Aleksandar Subic, Swinburne deputy vice-chancellor of research and development professor, said.
Licensing Crypto Exchanges
In Australia, AUSTRAC is responsible for overseeing the activities of crypto exchanges. The agency, in April 2018, launched a licensing framework for domestic cryptocurrency exchanges to ensure AML and KYC checks. According to the Australian ABC News, 246 cryptocurrency exchanges have officially registered with AUSTRAC to receive the operating license.
“We will not hesitate to take strong enforcement action where significant or wilful non-Compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term is identified,” an agency spokesperson said.
Blockchain Gaining Momentum
Although blockchain is not mainstream yet, many established financial institutions are moving towards the decade-old technology. JP Morgan Chase recently revealed the ongoing development of JPM Coin to boost its settlement efficiency.
Last month, interbank payment and messaging network SWIFT announced the trial of a blockchain-based proof-of-concept for end-to-end payment tracking, payer authentication, and credit confirmation.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) is testing the usage of Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term to automate fund transfer instructions.
As reported by ZDNet on February 24, the financial intelligence agency has teamed up with Swinburne University of Technology to build a blockchain-based prototype to test the potential of smart contracts helping multiple actors automate their international fund transfer instructions (IFTIs) reporting to Austrac. Banks, remitters, and casinos fall under AUSTRAC’s category of reporting entities.
The report also detailed that the proof-of-concept (PoC) between AUSTRAC and the university commenced in December last year and is expected to last for around 12 months.
Moreover, apart from blockchain, the Australian agency is also exploring other technologies to automate IFTI reporting.
AUSTRAC’s partnership with the university was set in motion as Swinburne last month launched a global Blockchain Centre of Excellence along with IT consultancy firm Capgemini. According to the university, the center “will focus on advancing blockchain technologies, platforms, assets and systems to develop industry understanding and implementation of blockchain technologies.”
“We see this technology as the key digital innovation platform supporting global supply chains, intellectual property, and trade across a range of industry sectors in the future,” Aleksandar Subic, Swinburne deputy vice-chancellor of research and development professor, said.
Licensing Crypto Exchanges
In Australia, AUSTRAC is responsible for overseeing the activities of crypto exchanges. The agency, in April 2018, launched a licensing framework for domestic cryptocurrency exchanges to ensure AML and KYC checks. According to the Australian ABC News, 246 cryptocurrency exchanges have officially registered with AUSTRAC to receive the operating license.
“We will not hesitate to take strong enforcement action where significant or wilful non-Compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term is identified,” an agency spokesperson said.
Blockchain Gaining Momentum
Although blockchain is not mainstream yet, many established financial institutions are moving towards the decade-old technology. JP Morgan Chase recently revealed the ongoing development of JPM Coin to boost its settlement efficiency.
Last month, interbank payment and messaging network SWIFT announced the trial of a blockchain-based proof-of-concept for end-to-end payment tracking, payer authentication, and credit confirmation.