Ensuring that cryptocurrencies comply with existing regulatory frameworks and are interoperable with traditional legal and financial systems is a huge task, but one that is extremely worthwhile. To achieve this goal, we must achieve a certain level of standardization in the way the industry approaches compliance.

Recently, Binance has taken a big step in this direction by joining the Global Travel Rule Alliance (GTR), a global community of virtual asset service providers that use the same solution to comply with one of the key international anti-money laundering standards.

Follow the Travel Rule

Joining the GTR Alliance will ensure a higher level of data security and regulatory compliance. This strategic move is designed to keep us aligned with Recommendation 16 of the Financial Action Task Force (FATF), a reporting requirement also known as the Travel Rule, which is already being implemented in several countries and will become the universal standard in the next years.

A well-regulated environment plays a critical role in protecting users, dispelling unwarranted perceptions about cryptocurrencies and driving broader adoption of cryptoassets. As trusted service providers in the digital asset ecosystem, we have a duty to ensure that users' personal information is secure and private. Our partnership with GTR represents a step forward in this direction.

GTR aims to create a safer and simplified environment for businesses to meet the requirements of the FATF Travel Rules by taking advantage of the following features:

  • Global: The solution allows multi-regional coverage through a single platform.

  • Secure: The tool relies on secure encrypted channels to ensure that all personal data is protected.

  • Simple: GTR only requires a single integration to achieve superior interoperability between many digital asset service providers.

Thanks to its broad applicability, robust data protection mechanisms, and simplified integration, GTR offers an unprecedented level of efficiency and security that is uniquely suited to global virtual asset service providers (VASPs) like Binance. Industry players using this solution form the GTR Alliance, thus promoting interoperability and standardized compliance in the digital asset space.

Data security technology

GTR's approach to data security is one of its strengths. In one of their solutions, VASPs have full control over their own decryption keys and protect transaction validation by applying Keccak256 encryption to all personally identifiable information (PII). Transforms sensitive user data into irreversible, unique identifiers, while ensuring that plaintext PII storage is removed. The transmission of such hash information is carried out using Mutual Transport Layer Security (mTLS) technology, thereby strengthening the security framework with a zero trust model.

Steve Christie, our deputy director of regulatory compliance, said: “Joining the Global Travel Rule Alliance is an exciting step forward in consolidating our international compliance efforts. We are particularly excited about the ability it gives us to consolidate our efforts on a global scale, overcoming the challenge of fragmented regional integrations. This move not only aligns us with global FATF standards, but allows us to proactively provide our broad user base with assurance that their data and transactions are secure. Without a doubt, this alliance amplifies the trust, security and transparency that our users can expect on Binance.

Our alliance with GTR also allows us to work hand-in-hand with other industry leaders focused on regulatory compliance, such as CODE, Sygna and Sumsub. Together, we aim to improve trust within the cryptocurrency ecosystem and address collective regulatory compliance needs.

We extend a warm invitation to other Travel Rules and VASP solution providers to also join this critical mission. For more information and to register, visit the Global Travel Rule Alliance website directly at: https://www.globaltravelrule.com/en/home.

Risk warning: Investment in crypto assets is not regulated, may not be suitable for retail investors and the entire amount invested may be lost. It is important to read and understand the risks of this investment, which are explained in detail at: www.binance.com/es/risk-warning