Cryptocurrency network TemTum is partnering with identity verification service Shufti Pro to provide Anti-Money Laundering (AML) and Know Your Customer (KYC) screening services for its customers.
As part of the partnership announced on April 7, Shufti Pro will verify TemTum clients’ KYC data including date of birth, addresses, names, document numbers, document issue dates and expiration dates.
EU’s 5th Anti-Money Laundering Initiative Compliance
The partnership follows the adoption of the European Union’s Fifth Anti-Money Laundering Initiative (5AMLD), which introduces new and, in some cases, tightened KYC measures on financial platforms — including cryptocurrency service providers.
According to the announcement, TemTum saw the need to partner with Shufti Pro in order to comply with the new 5AMLD regulations.
Speaking with Cointelegraph, TemTum chairman David Shimmon said that the primary motivations for the agreement with Shufti Pro is improving KYC/AML screening processes and differentiating themselves from other crypto companies “who were seen as malicious”:
“We believe that these kinds of partnerships are essential to building trust and confidence for the industry, and for increasing business opportunities. We need to further the industry’s reputation as trusted and reliable.”
Victor Fredung, Shufti Pro’s CEO, praised the announcement, who also highlighted how “truly innovative” the blockchain network TemTum is.
KYC/AML screening and anonymous nature of crypto transactions
Regarding the measures on KYC/AML screening, Shimmon believes that there is no conflict regarding the anonymous nature of cryptocurrencies transactions, as he considers it important to continue guaranteeing transparency and being a legal compliant. He added the following:
“All transactions remain on the blockchain with the exact same level of security and confidentiality. For the avoidance of any doubt, information related to KYC is handled and administered primarily by a third party.”
The crypto sphere has witnessed similar partnerships recently. Cointelegraph reported on March 23 that the peer-to-peer exchange Paxful reached an agreement with the blockchain analysis outfit Chainalysis to monitor transactions and combat any illicit behavior.