Global Digital Finance (GDF), is positioning itself as the industry body driving forward standards and best practices for the adoption of true digital financial based services. The GDF will look to drive greater clarity on what digital really should “mean and look like” across a wide range of what is currently termed “digital”. In a recent announcement, the GDF has vonvened a cohort of global digital asset exchanges (Virtual Asset Service Providers “VASPs” as described by the FATF) to collaborate on defining global standards. The work will also include the creation of a robust governance model for compliance with the new FATF recommendations specifically the “wire transfer rule”.
The FATF recommendation 16, requires VASPs to send both the originator and beneficiary information with very VASP to VASP transaction. However, there are no technical bodies or regulator as such set-up, enter the GDF. To help support a positive outcome for the wider digital asset community, the GDF has established their FATF steering committee, which will be made up of various GDF members, including VASPs members and digital asset participants. The committee will effectively look to defin data and operational standards and a governance mechanism to oversee compliance.
So why are we at ID Crypt Global posting a blog on this? Well, it is quite simple, we believe that in a true digital world, a VASP to VASP transaction will not host typical originator and beneficiary information, rather Distributed Identities (DIDs) would be used to identify the originator and beneficiary. Verifiable claims can be attached to the digital identity helping to strengthen FinCrime capabilities and not only meet compliance needs, exceed the standards currently set by a traditional banking world. The VASPs themselves will also have their own DIDs and expose verifiable claims to other VASPs, proving who they are in the transaction to transaction process.
We here at ID Crypt Global look forward to seeing what role the GDF plays in “digital experiences” and are really excited with the efficiency, security and performance gains true digital experiences can drive…