Software from 21 Analytics prevents money laundering

Crypto Finance and Mt Pelerin, two pioneers in the field of financial services for crypto currencies, have successfully concluded the first automated Bitcoin transactions using software developed by the Zug-based start-up 21 Analytics. This software allows customers of virtual asset service providers (VASPs) to “carry out crypto asset transactions between financial intermediaries that are quick and legally compliant with the Anti-Money Laundering Ordinance of the Swiss Financial Market Supervisory Authority FINMA”, according to an article on startupticker.ch.

The recently released software from 21 Analytics enables financial intermediaries and other VASPs to implement the FATF (Financial Task Force on Money Laundering) Travel Rule. As is the case with conventional bank transfers, financial intermediaries exchange data that identifies both the transaction originator and beneficiary when carrying out a crypto asset transaction with the software. The aim here is to prevent money laundering and the funding of terrorist activities.

The FATF is headquartered at the Organisation for Economic Co-operation and Development (OECD) in Paris. The committee currently comprises 35 member states in addition to the European Commission and the Cooperation Council for the Arab States of the Gulf. The guidelines formulated by the FATF are not legally binding, although a country that does not comply with them can be excluded from the global financial network. The FATF guidelines have become more important as the G20 (the group of the 20 most important industrialized and developing economies) has declared that it will apply the FATF guidelines to regulate money laundering activities in connection with cryptocurrencies.

According to Lucas Betschart, CEO of 21 Analytics, the rapid implementation of the FATF Travel Rule by financial intermediaries “demonstrates the competence with which the Swiss crypto ecosystem is taking the lead”.

“As one of the first Swiss VASPs to be travel-rule compliant, we are proud to be part of this demonstration”, comments Arnaud Salomon, CEO of Mt Pelerin. He also explained that the practical compatibility of crypto assets and regulatory compliance are key focuses of the tokenization technology developed by Mt Pelerin. CEO of Crypto Finance AG, Jan Brzezek, commented that all stakeholders now have “the legal certainty they need in order for crypto assets to become an important alternative asset class”.