The Travel Rule Working Group (TRP Working Group), a global independent industry body of virtual asset service providers dedicated to creating standards that adhere to the Financial Action Task Force’s (FATF) R.16 Travel Rule recommendation, created The Travel Rule Protocol (TRP). This article covers factors to consider when choosing TRP as a Travel Rule messaging protocol.
The Travel Rule Protocol (TRP) is a minimal, pragmatic API for compliance with FATF Travel Rule recommendations for virtual assets. TRP utilizes a REST (Representational State Transfer) API architecture that provides interoperability to web services and platforms. Through the RESTful service, TRP can manipulate web data to a uniform representation that can be utilized by other users of the network regardless of their base technology.
TRP is a messaging protocol. VASPs will still need to partner with a fully integrated Travel Rule solution provider or build additional components to integrate TRP.
TRP is an open-sourced industry alliance network, explicitly developed to launch a “first-generation, minimal, workable, and pragmatic API specification for compliance with the FATF Travel Rule in a timely manner, that also minimizes fragmentation and maximises interoperability.”
The protocol was developed as an industry initiative by Standard Chartered, ING, and BitGo, amongst others, to solve the technical aspect of the travel rule. Through welcoming open industry collaboration, the working group has since grown to encompass a large number of leading organizations from across the global Virtual Asset Industry and continues to welcome further organizations to join.
No. TRP is a minimal API. Due to its simplicity, TRP API implementation can be completed quickly and allows VASPs to integrate the API directly into existing systems. Several TRP Working Group members, including Notabene, have created implementations of the TRP API that can be utilized immediately.
Although TRP is still under development, the current steps to integration are as follows:
Notabene provides customers with automatic TRP endpoints for our customers, cutting down integration time.
As a plain messaging protocol, VASPs must perform their own due diligence on each counterparty before transaction with them on TRP. Notabene provides the due diligence questionnaire to support this process.
TRP has an open governance model. TRP hosts regular weekly meetings, chat rooms for more frequent collaboration, and emails for more infrequent formal announcements. Industry participants who wish to help towards the goals are encouraged to join the working group.
The TRP is intended to support transactions between custodial wallets, but there are discussions for future extensions to support non-custodial wallets.
Yes, TRP is live and has been in production since 2020. There are currently more than 20 VASPs transacting with the TRP protocol.
The Travel Rule Protocol has been incrementally developed by a worldwide self-selecting group of leading industry participants, collaborating openly and sharing to develop and evolve the solution. There is no single central body or organization behind the protocol, only collaboration.
TRP is royalty and license-free. However, any fees, licenses related to implementation, service of software providers, etc., are the implementing VASP’s responsibility. Further costs may include but are not limited to documenting the legal and contractual arrangement ensuring that any information exchange is done in compliance with applicable laws, e.g., GDPR.
As a member of the TRP Working Group, Notabene fully supports integration with TRP. Notabene provides an easy-to-use turn-key Travel Rule SAAS solution which includes support for TRP. Every Notabene customer has a live TRP endpoint.
Singaporean VASPs Luno, Crypto.com, and Xfers have successfully completed the second phase of Notabene’s Travel Rule testnet. Participants exchanged automated Travel Rule transfers in various real-world scenarios using TRP and TRNow, Notabene’s in-house solution, as messaging channels. Learn more.
While the protocol development is still early, the following seems to be the current features:
Find the latest TRP specifications here.
If your organization requires additional support outside of TRP’s current offerings, requesting changes on TRP is reasonably straightforward. Fill out this short survey to access the weekly calls where you can raise issues.
GitLab: Travel Rule Protocol Specifications
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