Shyft Hires Two Former FATF Execs for Its Cryptocurrency Compliance Product

Shyft Network has contracted two previous Financial Action Task Force (FATF) officials to help in the creation of its regulatory compliance product. 

FATF’s previous executive secretary, Rick McDonell, was added to the blockchain association’s board, alongside the previous lead of the Canadian delegation to the FATF, Josee Nadeau. Both held their separate positions at the FATF – a worldwide money-laundering regulator – for about ten years each.

Shyft manages a digital identity protocol for permissioned and permissionless blockchains in both private and public ecosystems. The company is at present working with Bermuda’s government to reveal the first stage of a digital ID solution for people of the island country, along with guests and businesses.

In July, Shyft collaborated with CipherTrace on an effort that intends to help cryptocurrency exchanges conform to strict new rules declared by the FATF in June. The new “travel rule” direction for FATF member countries sets out that “virtual asset providers” (VASPs) must get, hold, and share know-your-customer (KYC) data with different VASPs – and possibly administrative bodies – for digital currency transactions over a specific threshold.

While CipherTrace’s solution (known as TRISA) is different from Shyft’s, a source familiar with the matter said: “they’re not competing solutions, they’re inherently collaborative.”

Still, observers state the race is on to set up a worldwide standard for FATF compliance.

Shyft stated it has collaborated with some of the “top 10” digital currency exchanges to build up its answer for a vexing issue: VASPs presently come up short on an agreeable method to share KYC information that at the same time keeps client privacy.