PDAX Taps Notabene for Travel Rule Compliance
This initiative is meant to implement the firm’s compliance with the ‘Travel Rule,’ a government policy that requires customers to divulge personally identifiable information when their transactions exceed a certain threshold.
The home-grown cryptocurrency exchange Philippine Digital Asset Exchange (PDAX), has partnered with Notabene, a US-based crypto regulatory technology firm, to acquire its services. This initiative is meant to implement the firm’s compliance with the ‘Travel Rule,’ a government policy that requires customers to divulge personally identifiable information when their transactions exceed a certain threshold.
The integration of Notabene’s services in PDAX aims to facilitate the company’s compliance with the Travel Rule, an additional requirement under Circular No. 1108, series of 2021, issued by the Bangko Sentral ng Pilipinas (BSP) through its policy-making body, the Monetary Board.
“Our agreement with Notabene is an important step in complying with the Travel Rule and guarding the virtual asset market against financial crimes. We hope that with continued support from the banking system, the BSP, and the rest of the virtual asset ecosystem, we can help encourage more Filipinos to start trading virtual assets.” – Nichel Gaba, PDAX Founder and CEO
According to the circular, users who send amounts equal to or greater than $1,000 (around ₱50,000) in funds are required to provide additional information, including:
- the recipient’s full legal name
- the recipient’s cryptocurrency wallet address, and
- the name of the recipient’s exchange
In such transactions, details about the user, including the full name, customer ID, and address, amongst other requirements, will be automatically disclosed to the counterparty exchange. (Read more: What is the FATF “Travel Rule” in Cryptocurrency?)
PDAX chose Notabene for its end-to-end Travel Rule compliance software that supports integration to the broadest number of Travel Rule messaging protocols on the market which allows customers to send and receive counterparty information along with blockchain transactions to any counterparty in the world–without interference with the user experience.
“Over the years, PDAX has led the charge to bring more Filipinos into the crypto economy and drive financial inclusion and security through investments. PDAX is the first crypto exchange in the Philippines to go live with the Travel Rule. Integrating Notabene future-proofs their initiative to broaden the crypto market in the Philippines, by leveraging regulatory compliance to ensure their customers’ safety during transactions.” – Pelle Brændgaard, CEO of Notabene
Aside from PDAX’s compliance with the Travel Rule which would lessen fraud and stealing, the Financial Action Task Force (FATF) released in 2020 a compiled number of “red flag” indicators that virtual asset service providers (VASPs) should take note in identifying and reporting potential money laundering (ML) and terrorist financing activities. (Read more: The FATF Red Flags Report is Reactive Guidance to the Cryptocurrency Industry)
This article is published on BitPinas: PDAX Taps Notabene for Travel Rule Compliance
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