Anti-money laundering (AML) specialist VAF Compliance has launched a new Telegram bot that enables crypto companies to comply with AML and KYC rules while anchoring larger global licensing regulations.
The service will judge the risks of companies accepting tainted cryptocurrency funds using a growing list of sanctioned wallet addresses.
The bot is compatible with many blockchains, and provides assistance in both English and Chinese.
According to the Dubai-based company, companies can pay fees for reporting transactions across multiple blockchains.
VAF recently Charged Cryptocurrency exchange Huobi A-rating for transactions involving a cluster wallet linked to terrorism and child abuse. Last month, US senators accused Binance, the world’s largest cryptocurrency exchange, of being a “hotbed of illegal activity.”
Anti-money laundering tools like the VAF bot can help crypto companies in the EU and Hong Kong comply with upcoming legislation.
Notabene, a company that helps crypto wallet companies comply with the FATF’s travel rule, which in 2019 grew to include cryptocurrency transactions, favored the approach taken by European lawmakers when applying the travel rule to cryptocurrencies in their upcoming markets in its crypto assets bill.
“They opened up and moved quickly,” Lana Schwartzman recently told BeInCrypto.
According to Schwartzman, Notabene’s head of regulation and compliance, the new rules give the industry a grace period to comply. MiCA’s Transfer of Funds set of rules requires identity verification at both ends of a cryptocurrency transfer.
According to Notabene COO Alice Nawfal, the United States can use the MiCA strategy and develop compliance around money laundering by meeting with the industry.
The MiCA bill, which was approved by European lawmakers in October 2022, will be voted on by the EU Council later this month.
Hong Kong’s new rules to step up exchange registration requirements
Arguably the next major global crypto hub, a recent Hong Kong advisory paper on cryptocurrency raised eyebrows with its requirement that all crypto companies register with the Securities and Futures Commission.
Registration ensures companies comply with the Anti-Money Laundering and Combating the Financing of Terrorism (Amendment) Act 2022. Submissions for the consultation paper closed 31st March. The paper will inform the licensing system that will come into effect from June 1.
ZA, Hong Kong’s largest virtual bank, conducts anti-money laundering checks for local Web3 companies who wish to open accounts by confirming their information in the city’s company registry. The CEO of the company has Certain that none of its clients had violated the city’s current rules.
Under current licensing regulations, HashKey and OSL are the only registered exchanges.
Like the recently liquidated Silvergate Bank, ZA offers conversion bars from digital currencies to cryptocurrencies.
For a recent Be (In) Crypto Bitcoin (BTC) analysis, click here.
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