Implementing the Crypto Travel Rule with Astra.

While Decentralized Finance (DeFi) continues to grow as a whole, we still see significant flaws in insurance, regulation, and general compliance. We at Astra continue to fight every day for regulatory compliance in the DeFi space to help improve the trust and safety in the crypto market.

The current lack of crypto regulation means that scams and fraud are still daily concerns for people actively investing in the market. To battle that, the Astra solution is fighting to create the proper regulations while maintaining decentralized standards.

The Astra Solution will be one of the biggest movers in the industry to push regulatory compliance in Web3. Our product will act as a decentralized compliance layer to help provide safety and insurance for individuals as well as companies in DeFi.

As an ultimate goal, Astra will help all prospective users with a decentralized know-your-customer (KYC) process and provide the insurance needed to eliminate scams, money laundering, and other fraudulent activities.

There is still a long way to go, but we are already moving in the right direction with the Astra solution. One of the next necessary steps will be implementing the crypto Travel Rule to help DeFi move toward mainstream adoption.

What is the Travel Rule?

First, we must understand what the Travel Rule is and its purpose. The Travel Rule ensures that economic entities collect and store information about people or companies involved in a money transfer.

For crypto, this would mean a rule that obliges Virtual Asset Service Providers (VASPs) to collect and store information about money that travels between a buyer and a seller. With the Travel Rule, it will be possible to collect Personal Identifiable Information (PII) and KYC to make transactions over a given limit safer between two parties.

To comply with the Travel Rule, it will be required that all transmittor’s include the following information. With this information provided every time, the safety surrounding a transaction will increase in the crypto space.

• The name of the transmitter
• The account number of the transmitter, if one is used
• The address of the transmitter
• The identity of the transmitter’s financial institution and the amount of the transmittal order
• The execution date of the transmittal order
• The identity of the recipient’s financial institution

Implementing the crypto Travel Rule is more important than ever, as it will help protect both buyers and sellers worldwide. The current state of DeFi has a lot of inconsistencies and flaws that make it a tricky market to navigate.

With the crypto Travel Rule, we will see a reduction in fraud and help create a safety net that could potentially open the DeFi space for mainstream usage while keeping everything decentralized.

How does Astra help platforms maintain Travel Rule compliance?

For everyone on the Astra team, it’s vital to help platforms maintain the Travel Rule compliance. With Astra’s patented platform technology, we can help crypto platforms improve their security and deliver a product to their customers that feels safe from start to finish.

The Astra Solution is, as mentioned, a decentralized compliance layer that allows various protocols to adhere to the Travel Rule and other regulations. The Astra Solution is an excellent product for crypto platforms to adopt and implement the crypto Travel Rule simply and smoothly.

As an all-in-one product, the Astra Solution will help maintain the Travel Rule while bringing other benefits. It will essentially identify regional requirements and thus help meet local regulations.

For example, a high-value transaction between two people will automatically include a KYC process and ensure both parties are legit. The Astra Solution will also provide insurance to both parties, which means that any fraudulent behavior or other issues can be spotted and resolved if needed.

In a growing DeFi market with large transactions happening constantly, it will be crucial to have a solution to assist with the Travel Rule, insurance, and much more to avoid complications.

To learn more about how we at Astra fight to implement the crypto Travel Rule, check out our website and social channels. Step by step, we are moving DeFi closer to mainstream adoption.

A Decentralized Compliance Layer for the Web3 Economy and Delivering the Compliant Blockchain for the future. 💪

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