- Top Netherlands bank, ING, introduces a new protocol system to ease crypto exchanges and firms aiming at implementing the recommended FATF’s Travel rule.
- The new protocol, Travel Rule Protocol, or TRP, in short, sets ING as the first bank ever to comply with the Travel Rule affecting virtual assets.
In a report released earlier on Tuesday, ING launched the TRP joining forces with Standard Chartered, Fidelity Digital Assets, and several crypto-native firms, including BitGo, Crypto Broker AG, Metaco, 21 Analytics and OSL/BC Group.
The protocol aims to take a “regulatory first approach,” allowing firms dealing with digital assets to comply with the FATF recommendations easily. In a statement released on the launch, Hervé Francois, Blockchain Initiative Lead on Digital Assets at ING said:
“With a regulatory first approach, we are actively involved in different working groups to support standardization of this emerging ecosystem and ultimately pioneer mass adoption.”
The protocol, however, will steer away from the public cryptocurrencies such as bitcoin and ether favoring to work exclusively in decentralized ledger technology (DLT) projects. Hervé continued:
“ING, as an innovation leader on blockchain/DLT, sees increasing opportunities concerning Digital Assets on both asset-backed and native security tokens.”
“More Like SWIFT”
According to the statement, the new partnership aims at developing an infrastructure that offers virtual asset service providers (VASPs) a direct way to “query for the existence of contact or address,” such as a legal entity identifier and essential public information.
One source familiar to the matter stated the platform was more like SWIFT transfers, the interbank messaging and settlement system. The protocol also offers a hybrid system (permissionless and permissioned network) promoting an open, transparent solution to firms having trouble with the FATF Travel Rule compliance.
ING Bank in Blockchain
ING is a big digital assets player since opening its blockchain branch in 2018. Since the Travel Rule recommendation became public in 2019, the bank set out plans to get an understanding and look for opportunities in the crypto space that banks can fit into.
The Travel Rule is a recommendation by the Financial Action Task Force (FATF) to include any virtual asset service provider in the global anti-money laundering and anti-terror financing rings.
In a meeting scheduled for June 24th (tomorrow), the FATF committee will look into the overall progress of the implementation of the rule giving further recommendations.