Crypto Exchange Group Binance Chooses Shyft Network In ‘Travel Rule’

The crypto exchange group Binance, chose the Shyft Network in order to help address the looming regulatory requirements that the companies have to share the personal data of the users when handling digital asset transactions. Will this decision have any impact on the binance coin?

Shyft Network is one of the many potential solutions to the Financial Action Task Force ‘Travel Rule.’ The name came right from the stipulation that the identifiable information has to ‘’travel’’ with the transaction, considering crypto transactions are pseudonymous by design. Samuel Lim, the head of compliance at binance said:

 “Shyft stands out because they are extremely acute, and very well connected with global regulators. These things we consider to be very important. Of course, the underlying technology stack is core, too.”

Getting the public endorsement of the crypto exchange Group Binance is a huge deal for Shyft network since it has a SWIFT-like infrastructure incorporating ethereum technology. The company hired former FATF executive secretary Rick McDonell and the Shyft Network co-founder Joseph Weinberg commented:

 “We have been working with a lot of the big exchanges for the last nine months. Binance is the first to publicly come out, but more will definitely be on the way.”

The FATF is a global anti-money laundering agency that creates rules for the G-20 group of countries that will review the progress on addressing the travel rule for the virtual asset service providers in June later this year. Still, in its early days, the industry is getting concerned as Binance said it has been talking with ‘’a good four or five’’ candidate solutions. Lim said:

 “Shyft is not the only solution we are endorsing but it’s the first that we are putting our brand behind. Things could change in the future but as of now, the focus is on Shyft.

There are a lot of changing parts when it comes to meeting the travel rule requirements including creating an identity system across the universe of VASPs, the sharing and storing of personally identifiable information without having to compromise privacy and agree on standardized messaging or data transmission systems.

As per the Binance coin, it had a rough week previously hitting the $22 price point, showing that there could be a bigger crises on the market.