Cryptocurrency News

Tether and Notabene will work together on crypto regulation compliance

  • Tether announced Tuesday that it has entered into a test partnership with Notabene.
  • The partnership with Notabene is designed to help Tether improve its global compliance and transparency and optimize its products
  • The partnership comes amid lawsuits and investigations by regulators over Tether's financial backing.

Stablecoin issuer Tether is taking steps to better comply with global crypto regulations.

Tether wants to improve its global compliance

Tether announced Tuesday that it has entered into a test partnership with Notabene. Notabene is a startup that provides crypto exchanges with know-your-customer (KYC) infrastructure to comply with the Financial Action Task Force’s “Travel Rule,” which requires financial institutions to share KYC information for both senders and receivers of relevant transactions.

The Paris-based money laundering regulator has extended its cryptocurrency compliance guidelines to exchanges and stablecoin issuers, which it refers to as “virtual asset service providers” or “VASPs.” According to Leonardo Real, Tether’s chief compliance officer, the partnership with Notabene is designed to help Tether improve its global compliance and transparency and optimize its products. “As pioneers of blockchain technology and leaders in transparency, we are dedicated to not only keeping up with the new rules but also helping shape them,” Real wrote in a press statement.

The partnership comes amid lawsuits and investigations by regulators

The partnership with Notabene comes amid lawsuits and investigations by regulators over Tether’s financial backing. Most notably, SEC has stated that it will not release records surrounding the stablecoin issuer because they were collected for enforcement purposes.

Last week, research firm Hindenburg Research announced it would offer a bounty of up to $1 million for secret details about Tether’s reserves backing the stablecoin. Hindenburg expressed doubts about the stablecoin’s coverage. For its part, Tether called the bounty a “pathetic bid for attention”.

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