PDAX taps Notabene for Travel Rule compliance

Philippine Digital Asset Exchange (PDAX), the leading regulated virtual asset provider (VASP) in the country, has tapped the services of US-based crypto regulatory technology firm Notabene, to initiate the company’s compliance with the ‘Travel Rule,’ a government policy that requires customers to divulge personally identifiable information when their transactions exceed a certain threshold.

PDAX tapped Notabene for its innovative, end-to-end Travel Rule compliance software that supports integration to the broadest number of Travel Rule messaging protocols on the market, allowing customers to send and receive counterparty information along with blockchain transactions to any counterparty in the world–without interference with the user experience.

The cooperation between PDAX and Notabene aims to facilitate the exchange’s compliance with the Travel Rule, an additional requirement under Circular No. 1108, series of 2021, issued by the central bank of the Philippines, Bangko Sentral ng Pilipinas (BSP) through its policy-making body, the Monetary Board.

The said circular requires that users who send amounts equal to or greater than USD 1,000 (around Php50,000) in funds will need to provide additional information such as the recipient's full legal name, the recipient's cryptocurrency wallet address, and the name of the recipient’s exchange. In such transactions, details about the user, including the full name, customer ID, and address, amongst other requirements, will be automatically disclosed to the counterparty exchange.

Nichel Gaba, CEO and Founder of PDAX comments “Our agreement with Notabene is an important step in complying with the Travel Rule and guarding the virtual asset market against financial crimes. We hope that with continued support from the banking system, the BSP, and the rest of the virtual asset ecosystem, we can help encourage more Filipinos to start trading virtual assets.”

Pelle Brændgaard, CEO of Notabene adds “The Philippines ranks fifth in the world when it comes to cryptocurrency ownership, and it is expected to continue to grow in the coming years. As crypto transactions become more commonplace, we are thrilled to support PDAX as they roll out Travel Rule compliance in the Philippines to safeguard their customers. PDAX chose our end-user friendly universal Travel Rule solution to ensure minimal friction as they lead the Philippine market in crypto regulatory compliance.”

By maintaining an information trail on large-volume transactions, the BSP hopes to prevent and mitigate money laundering acts and other financial crimes. The BSP Circular No. 1108, series of 2021 amended and improved the guidelines that govern VASPs in the Philippines that were earlier stipulated in the virtual currency framework passed in 2017. The Monetary Board brought their updates consistent with the standards of risk management regarding AML/CFT that are set by the global regulatory authorities such as FATF. In the future, all Philippine VASPs must comply with the Central Bank’s rules regarding wire transfers.