Ripple’s XRP Seeks Partnership for FATF Compliance
After a series of regulations was proposed on June 21, Ripple has partnered with Coinfirm to provide data sufficient to comply with the requirements of the Financial Action Task Force (FATF).
Ripple’s XRP and its ecosystem seek to become compliant with the recent transparency requirements by the Financial Action Task Force (FATF), reported Forbes. This may be possible through the recently announced partnership with Coinfirm, a startup dealing with regulation issues surrounding digital assets.
The FATF, an 37-country body, has issued a set of guidelines, establishing rules for entities that may be considered digital asset operators.
Coinfirm will not track individual amounts, but will observe network-wide events. The technology may allow to reveal which XRP have gone through a mixing service, or through other suspicious clusters of addresses. Additional information will be available on whether a wallet belongs to an exchange that still fails to perform sufficient monitoring and know-your-customer procedures. The Coinfirm system will build a ratings system for XRP addresses, without revealing their owners.
“Because you understand the profile, you don’t need the data of the sender because your internal systems are not able to process this data,” said Coinfirm CEO Pawel Kuskowski. “It depends on how the FATF regulations will be rolled out in each country.”
The addition of address tracking is a new form of de-anonymization. There are only very few digital assets that require a KYC procedure, Electroneum (ETN) being one of them. Other coins and tokens have either a pseudonymous or anonymous system of addresses, and most of the time, tracking those addresses is on an ad-hoc basis, usually following an event such as a hack or theft of coins.
XRP has kept up the fight for widespread adoption, attempting to gain a foothold in the international remittances and fintech environment. But more recently, the asset has found itself attracting the attention of hackers. Even now, it is possible to trace some XRP coins to their origin.
XRP currently trades at $0.42, and is one of the assets that has failed to recover ground to its all-time highs. Still, XRP, distributed years ago, started off with a sub-penny price, before trading at peak prices above $3.20.