Hybrid liquidity aggregator Finxflo has signed a deal with Onchain Custodian to provide custody services in preparation to meet updated anti-money laundering (AML) regulation, commonly known as the 'Travel Rule'.
The Travel Rule requires crypto companies to share customer information with each other as part of a transaction. More and more jurisdictions around the world are beginning to implement these rules as a prerequisite to obtaining operating licenses.
Onchain Custodian says it is imperative for key industry players like Finxflo to have all of the required contingencies in place.
Many global crypto firms have been struggling with the practical challenges of the travel rule as they contend with maintaining a robust process where the ability to comply with the rule is largely dependent on counterparties providing the necessary information.
In Singapore, however, the MAS has adopted a proactive approach, and have already provided clear guidance on the travel rule (MAS PSN02).
According to Onchain Custodian, this is helping to create a safe environment for firms to make a head start on compliance before the global regulatory go-live.
Onchain Custodian is a custody and open finance service for institutional clients to manage digital assets safely and securely whilst complying with compliance requirements, among which those set out under the travel rule.
Finxflo, a regulated, secure trading platform, believes that Onchain Custodian is the perfect custodian for clients' funds.
"Finxflo is designed to offer the best rates and prices from the world's leading CeFi and DeFi protocols through one connection, account, and know-your-customer process, and this adherence to quality extends to its choice of partners,” says James Gillingham, CEO at Finxflo.
Gillingham continues: “We are confident that this association will yield positive results for both companies, but most importantly, for our customers.”
Alexandre Kech, CEO of Onchain Custodian, comments: "Onchain Custodian is proud to be the custodian of choice for Finxflo. Working with such an experienced team, that has a clear vision of what they want to achieve for their customers has been inspiring. Together, we are working to ensure Finxflo and their customers' need for low-latency and convenience is met, without compromising on security or compliance.”
To read more about the Travel Rule, go to page 28 of Asset Servicing Times’ Digital Assets handbook.
