Travel Rule Protocol Version 2.0 launched, simplifying the end-user crypto exchange experience

Next Step In Virtual Asset Adoption by Traditional Finance

● Builds on previous Travel Rule Protocol version 1.1.0 by adding easy to use workflow for end users while solving the “discoverability” problem

● Provides simple way for Virtual Asset Service Providers to comply with FATF recommendations without putting additional burden on end users

Global Release - 17 June 2021 — The Travel Rule Protocol Working Group (TRP Working Group), a global independent industry body of leading virtual asset service providers (VASPs) dedicated to creating standards that adhere to the Financial Action Task Force’s (FATF) R.16 Travel Rule recommendations, is pleased to announce today that it has published Version 2.0.0 of its standard Inter-VASP messaging API for Travel Rule data exchange (TRP API).

The free, easy-to-use standard for communications between VASPs encourages mainstream adoption of virtual assets by enabling compliance with anti-money-laundering (AML), counter-terrorism-financing and know-your customer (KYC) protocols in line with the FATF’s recommendations. Due to its simplicity, implementation of the TRP API can be completed rapidly, and allows VASPs to integrate the API directly into existing systems. A number of TRP Working Group members have created implementations of the TRP API that can be utilized immediately.

The TRP Version 2.0.0 builds upon the previous version 1.1.0 adding a simplified workflow for end users allowing them a familiar user journey, while fully complying with the FATF recommendations. Version 2.0.0 adds the ability for VASPs to create a very simple end user workflow, which helps the user provide all the information necessary for the VASP to comply with the FATF recommendations and bypasses the need for a seperate “VASP discoverability mechanism”.

“It was important to the TRP Working Group that the end user experience was as easy as possible, and no more difficult than typical existing pre-Travel Rule industry practises” said Andrew Davidson, the TRP Working Group chair. “We decided to adopt a workflow based on the existing LNURL standard, a bech32-encoded query string from the Lightning Network. The solution can be used with any virtual asset and gives the VASP a lot of flexibility to tailor it to their user’s needs while making an easy to implement or adopt solution”

“With the LNURL-based workflow, we have allowed end users to have an almost identical user experience to that they are used to with existing Virtual Asset platforms, while at the same time being compliant with the FATF recommendations and bypassing the complexity of the VASP discoverability”.

“For the end user the experience is very familiar” said Harm Aarts, from 21 Analytics, one of the key members of TRPWG, an independent software vendor who sells compliance solutions to VASPs and other financial institutions. “Instead of copying the blockchain address between VASPs deposit and withdrawal screens, or scanning address QR codes, they just copy and paste the encoded TRP 2.0.0 LNURL, or scan the TRP 2.0.0 LNURL QR code.”

Christopher Kiew-Smith, Chief Compliance Officer, Zodia and member of the TRPWG - “Zodia remains a strong proponent of the reliable and efficient delivery of important regulatory obligations such as the Travel Rule. Transactional transparency in virtual assets is a crucial means of combating financial crime such as money laundering, terrorist financing and the sale of illicit products and services. The latest update to TRP 2.0 allows us and the virtual assets ecosystem as a whole to offer even safer services and protect our clients from criminal third parties.”

As more and more jurisdictions implement regulations which are aligned with the FATF Travel Rule recommendations it is expected that many existing VASPs and new entrants into the expanding Virtual Asset space will need to adopt a Travel Rule solution very soon, so the publication of the latest version of Travel Rule Protocol is very timely for the industry.

About the Travel Rule Protocol Working Group

The Travel Rule Protocol Working Group (TRP Working Group), a global, open independent, non-profit industry body of more than 25 leading virtual asset service providers (VASPs) across more than 10 Financial Industry Task Force (FATF) member jurisdictions. The Group includes pioneering VASPs, banks, investment firms and other members including OSL, Zodia Custody, ING, 21 Analytics, Notabene and XReg among others.

The Group’s main goal is the creation of a pragmatic protocol for compliance with the FATF Travel Rule particularly during the so called “Sunrise Period”.

The industry Working Group has regular weekly meetings, and is open to new members. Industry participants that wish to join the Group, can inquire at:

https://travelruleprotocol.org

Contact:

media@travelruleprotocol.org

TRP Working Group API v1.0.0 for FATF Travel Rule Compliance Released

TRP Working Group API v1.0.0 for FATF Travel Rule Compliance Released

In Key Step Towards Virtual Asset Adoption by Traditional Finance

● Free, easy-to-use standard for communication between virtual asset service providers can be implemented rapidly

● 25+ member working group of VASPs and financial companies created compliance industry standard to encourage virtual asset adoption

Global Release - 8 October 2020 — The Travel Rule Protocol Working Group (TRP Working Group), a global independent industry body of leading virtual asset service providers (VASPs) dedicated to creating standards that adhere to the Financial Action Task Force’s (FATF) R.16 Travel Rule recommendations, is pleased to announce today that it has published Version 1.0.0 of its standard inter-VASP messaging API for Travel Rule data exchange (TRP API).

The free, easy-to-use standard for communications between VASPs encourages mainstream adoption of virtual assets by enabling compliance with anti-money-laundering (AML), counter-terrorism-financing and know-your customer (KYC) protocols in line with the FATF’s recommendations.

Due to its simplicity, implementation of the TRP API can be completed rapidly, and allows VASPs to integrate the API directly into existing systems. A number of TRP Working Group members have created implementations of the TRP API that can be utilized immediately, with no need to pay a governing body or obtain licenses to use the protocol.

The TRP Working Group was created in response to the 39-member FATF’s AML-related Travel Rule recommendations which have gained broad support from member country regulators and the wider industry. The Working Group was started by Standard Chartered, ING and BitGo, and currently includes members from more than 25 organisations, including OSL (current Working Group chair).

The TRP Version 1.0.0 utilizes two simple RESTful APIs for querying address ownership and sending required originator and beneficiary information about virtual asset transfers between VASPs and other financial institutions.

“The impetus for the TRP API was a desire by the Working Group to ensure an easy path to Travel Rule compliance, as well as communications standardization and interoperability for VASPs around the world,” said Maxime de Guillebon of SC Ventures, Standard Chartered’s innovation, fintech investments and ventures unit. “Our API allows organizations to do this as they mature, rather than attempting to integrate a number of already existing complex solutions during critical periods of time.”

In addition, the TRP API includes an extension mechanism that allows users to add additional functionality - which may be required for regional or company-specific compliance reasons - without making the core protocol more complex. The TRP API allows the originating user to select the beneficiary VASP, address directory lookup and validation prior to sending; and/or a hybrid of these options. The API also gives beneficiary VASPs the option to prevent unwanted transfers from originating VASPs from being sent to the blockchain.

Hervé Francois, blockchain initiative lead at ING bank and Pyctor CEO, a digital assets custody solution said: “We’re excited for the future as TRP is scalable in the financial sector while maximising interoperability with other emerging Travel Rule solutions. We are implementing the TRP protocol in Pyctor and looking forward to driving the ecosystem adoption even further.”

“We created the TRP API to be flexible and pragmatic allowing a wide range of industry participants across jurisdictions to adopt it with minimal effort,” said OSL’s Andrew Davidson, who chairs the TRP Working Group. “For compliance purposes, we ensured the API strictly adheres to the Travel Rule recommendations on quickly and securely sending accurate and required beneficiary and originator information.”

A key part of the path to interoperability for the TRP API was adopting the InterVASP Joint Working Group’s IVMS101 data standard, which has been well supported across the industry. A number of the key members who helped create the IVMS101 standard have also been part of the TRP Working Group.

“Publication of the TRP API version 1.0.0 marks a significant milestone in the industry-wide adoption of the IVMS101 data model standard,” said Siân Jones, Senior Partner at XReg Consulting, who previously sat on the FATF Policy Development Group that worked on virtual assets. “With the TRP API, VASPs now have an easy way to meet regulatory obligations, while still assessing the broad range of IVMS101-compliant Travel Rule solutions coming onto the market.”

About the Travel Rule Protocol Working Group

The Travel Rule Protocol Working Group (TRP Working Group), a global, open independent, non-profit industry body of more than 25 leading virtual asset service providers (VASPs) across more than 10 Financial Industry Task Force (FATF) member jurisdictions. The Group includes pioneering VASPs, banks, investment firms and other members including OSL, Standard Chartered, ING, BitGo and 21 Analytics, among others.

The Group’s main goal is the creation of a first-generation, minimal, workable, pragmatic API specification for compliance with the FATF Travel Rule particularly during the so called “Sunrise Period” while maximising interoperation with other emerging Travel Rule solutions.

Currently chaired by OSL, the Group has regular weekly meetings, and is open to new members. Industry participants that wish to join the Group, can inquire at:

https://travelruleprotocol.org

Contact:

media@travelruleprotocol.org