Binance has recently become a member of the Global Travel Rule (GTR) Alliance in order to comply with recommendations from the Financial Action Task Force (FATF).
This move is aimed at enhancing compliance and ensuring better data security, according to a statement by the company.
The Travel Rule, also known as Group Recommendation No. 16, requires virtual asset service providers (VASPs) to share client information when processing cryptocurrency transactions that reach a certain threshold (which is currently set at $1,000/€1,000).
This includes personal details such as the sender and recipient’s names and addresses, as well as account information. These rules were introduced in 2019.
By joining GTR, Binance gains access to a solution for verifying data and securely transmitting it using cryptography.
Binance’s Deputy Chief Compliance Officer, Steve Christie, described joining GTR as a significant step in strengthening their global compliance efforts, and emphasized the importance of building trust, security, and transparency for the platform’s users.
