Trezor Will Use Swiss Travel Rule Protocol For Crypto Wallets

Trezor will use the Swiss travel rule protocol for private cryptocurrency wallets that is developed by 21 Analytics’s Address Ownership Proof Protocol that can automatically identify an unhosted wallet when the crypto is withdrawn from a Swiss exchange so let’s read more in our latest cryptocurrency news.

An automated way of sharing proof that a user owns a private wallet when transacting with an exchange in Switzerland is being integrated by Trezor, the hardware wallet company. Developed by crypto startup 21 Analytics that will work with other wallets as well like Edge and BitBox and it was designed to accommodate Swiss regulator FINMA’s enthusiastic implementation of anti-money laundering requirements for crypto companies. Going further the recommendations made by the global AML Watchdog the Financial Action Task Force, the crypto requirements in Switzerland also include the ID of private wallets transacting with the country’s virtual asset service providers.

The MAL requirements into the realm of non-custodial wallets are something that most countries at the initial stage are mulling over which is a bad thing for crypto advocates. The CEO of 21 Analytics Lucas Betschart noted:

“Switzerland has some extra harsh regulations when it comes to the Travel Rule, and FINMA was always at the forefront implementing everything the FATF publishes very quickly. So we have the Travel Rule actually being enforced here.”

When it comes to determining ownership of private wallets, the VASPs in Switzerland were asking users to submit a screenshot of their wallet and conduct the Satoshi Test where the specific amount of coins are sent to a verified wallet to confirm their receipt. But another way is manual signing in using a private key while the AOPP streamlines and automates the manual signing process as Betschart added. Marek Palatinus who is the CEO of SatoshiLabs who makes the Trezor hardware wallet noted:

“We’re glad to see more individuals taking custody of their crypto assets. AOPP makes it simpler and faster for users to withdraw to the safest place for their coins: their Trezor.”

Betschart also noted that about 95% of the transactions from Swiss VASPs don’t go to other Swiss VASP but to a top 20 exchange like BitMEX, Bitfinex, Binance which are exchanges that don’t have travel rule solutions in place. The result is that the customers of the Swiss VASPs send and receive a lot of crypto in their own non-custodial wallets and use AOPP as Betshcart added:

“It’s an interesting effect of activating the Travel Rule in Switzerland that more people are forced to use their own wallet. So it’s not like everyone is sharing data, but just that everyone is sending to their own wallet before they can send assets to Binance, for example.”

Source: https://www.dcforecasts.com/blockchain-news/trezor-will-use-swiss-travel-rule-protocol-for-crypto-wallets/