Thread by @shyftnetwork

1) Although published in 2019, very few countries have enforced the #FATF Travel Rule till now!

But that will change soon as ⚠️ Crypto #regulations are discussed at as high a level as the #G20.

And #Shyft will be there to educate policymakers and look for regulatory solutions.

2) Once countries begin enforcing the crypto regulations, including the Travel Rule, #VASPs will have no option but to comply

However, there are some major issues that must be highlighted during Travel Rule compliance:

#1 Attribution 🚨
#2 Data Transfer 🚨

3) These issues put #VASPs in a fix!

So, what is the Attribution problem? 🤔

It refers to the difficulty beneficiary #VASPs face in proving they own the respective wallet address

And thus, Originator VASPs, too, have no way to verify the identity of counterparty #VASPs

4) It goes without saying solving the #attribution problem is crucial for Travel Rule compliance!

After all, user data that #VASPs share is sensitive info

Interestingly, banks 🏦 rely on #SWIFT, #BIC, #IBAN to solve the attribution problem in the traditional financial industry

5) And what's the issue with the data transfer between #VASPs? 🤔 

Just like how there's no global framework for attribution in the #crypto space, there's none for data transfer between VASPs either

So, the problem is how to reliably & securely transfer user data between #VASPs

6) Some Travel Rule Solutions do exist in the market

But there’s a problem with some of those, which you must know about

When using some Travel Rule solutions, the user data that #VASPs share with each other may pass through the internal servers of the Travel Rule Solution ⚠️

7) Yes, you read that right!

And this is clearly a no-no for #VASPs from a #data security perspective

Guess what, #Veriscope solves both of these problems!

And later this week, We will share a Twitter thread on how Veriscope solves these issues

8) Overall, Shyft Network is playing a key role in the #crypto ecosystem

Realizing its role, the #Shyft core team is at the #G20 meeting to educate authorities and collaborate with them to solve the bottlenecks preventing the #crypto industry from realizing its true potential

9) Comment below in case you have any questions!

We will keep an eye out for them 👀 and will answer them asap

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