Financial news

Cake DeFi, a fintech platform providing access to Decentralised Finance (DeFi) services and applications, has integrated Notabene’s crypto pre-transaction decision-making platform for crypto regulatory compliance.

The integration of Notabene’s compliance platform enables Cake DeFi to launch ‘Travel Rule’ compliance in line with global regulations, beginning in Singapore. The travel rule mandates crypto exchanges, digital wallet providers, and financial institutions that deal with virtual assets to disclose, collect, screen, and transmit customer data beyond a certain threshold.

Cake Defi selected Notabene’s holistic solution to overcome key challenges posed by the Travel Rule for large companies in the crypto space. Such challenges include the need for a solution that can handle the varying jurisdictional implementations of the Travel Rule and connect to Virtual Assets Service Providers (VASPs) globally.

In Singapore, the Travel Rule currently applies to all holders of a payment service license under the Payment Services Act 2019. It requires originator VASPs to transmit value originator and beneficiary customer information to the Beneficiary VASP, regardless of the value transfer amount. Further information is required if the SGD 1,500 threshold is exceeded. The United States Financial Crimes Enforcement Network has set the threshold at $3,000, while the European Banking Authority set it at €1,000.

Navigating cross-border transaction complexities

Dr Julian Hosp, CEO and co-founder of Cake DeFi, said: “This partnership with Notabene will ensure that effective travel rule compliance measures are put in place, preparing us for the enhanced regulations that will soon come into force. Security, transparency, and compliance, are core values that guide everything that we do at Cake DeFi. The successful integration of the Notabene platform underscores our commitment to deliver secure and practical solutions to our customers, while keeping up with worldwide regulations.”

Notabene’s platform specifically supports customers as they navigate the complexities of transacting across borders. Counterparties are subject to different travel rule obligations, both in terms of thresholds and the scope of the required information.

The firm does this by embedding jurisdictional rules in the platform. By using Notabene, Cake DeFi will manage all transactions in one dashboard with a unified set of rules that automate decision-making prior to transactions. The Notabene platform also provides multi-entity support, enabling Cake DeFi to manage transaction flow to the correct entity based on the appropriate jurisdictional requirements.

Pelle Brændgaard, co-founder and CEO of Notabene, also commented: “We are proud to partner with Cake DeFi in the effort to create a safer blockchain economy. Cake DeFi was looking for a trustworthy partner that facilitates due diligence, wallet identification, and automates transactions and we look forward to working with them in the shared mission of enabling safe and trusted crypto transactions.”