Three Swiss companies, 21 Analytics, Crypto Finance AG, and Mt Pelerin, have together carried out the first automated Bitcoin transition fully compliant with the Swiss Financial Market Supervisory Authority’s (FINMA) anti-money laundering (AML) provisions.
Announced today, a transaction in Bitcoin worth 21 million CHF (around $23 million) was transferred between Crypto Finance and Mt Pelerin. 21 Analytics provided the software and the other necessary decentralized protocols supporting the transaction.
“The global adoption of crypto assets requires an international standard as well as the technology and processes to comply with it. We are pleased that this could be implemented in record time,” Jan Brzezek, Crypto Finance CEO, said in a statement.
Killing the Anonymity
FINMA has updated its AML rules considering the Financial Action Task Force (FATF) recommended Travel Rules that require mandatory disclosure of the originator and recipient identities for any crypto transactions above $1,000.
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Regulators across the globe are implementing these recommendations to curb the rampant financial crimes using digital currencies.
“The speedy implementation of the FATF Travel Rule by financial intermediaries demonstrates the competence with which the Swiss crypto ecosystem is taking the lead,” 21 Analytics CEO, Lucas Betschart said.
The Zug-based firm’s software enables financial intermediaries and other virtual asset service providers (VASPs) to implement the FATF Travel Rule in compliance with FINMA over the Open VASP Protocol and the Travel Rule Protocol (TRP), and the process is completed without any manual intervention.
The first transaction on this platform was made on Thursday.
“This live demonstration shows once again that crypto assets and regulatory compliance are compatible through practical solutions, which is a key focus of our tokenization technology,” Arnaud Salomon, CEO of Mt Pelerin, added. “As one of the first Swiss VASPs to be travel-rule compliant, we are proud to be part of this demonstration.”