[Binance joins Global Travel Rule Alliance to enhance compliance and security]
Binance has taken a major step towards compliance and security by joining the Global Travel Rules Alliance (GTR Alliance). The move aligns Binance with the international Virtual Asset Service Providers (VASPs) community and is committed to complying with international anti-money laundering (AML) norms, specifically the Financial Action Task Force (FATF) Recommendation 16, also known as the Travel Rule .
Binance’s goal in joining the GTR Alliance is to standardize compliance in the cryptocurrency industry and ensure that platforms comply with FATF’s reporting requirements, which have been implemented in multiple countries and are expected to become global standards.
The GTR solution offers several key features that make it an ideal compliance tool for VASPs worldwide. It allows for multi-region compliance and uses secure and encrypted channels to keep personal data safe. Additionally, it enables superior interoperability between digital asset service providers with just one integration.
One of the powerful features of GTR in terms of digital data security is that it allows VASPs to have full control over their decryption keys and use Keccak256 encryption for transaction verification. This method converts important user data into unique identifiers, eliminating plaintext PII storage. Use Mutual Transport Layer Security (mTLS) technology to transmit hashed information.
Steve Christie, Chief Compliance Officer at Binance, said that joining the GTR Alliance makes their international compliance efforts stronger and aligned with FATF standards. He emphasized that this alliance enhances the security and transparency of Binance users and ensures the security of their data and transactions.
Joining the GTR Alliance also enables Binance to partner with other compliance-focused market leaders, including Sygna, CODE, and Sumsub. This collective effort aims to enhance trust and security in the crypto industry and meet compliance needs. Through this strategic move, Binance is expected to set new compliance and data security standards in the digital asset industry.
