VerifyVASP

VerifyVASP is a recently created Singapore-based decentralized Travel Rule messaging protocol created by South Korean cryptocurrency exchange Upbit. This article covers factors to consider when choosing VerifyVASP as a Travel Rule messaging protocol. 

How does VerifyVASP work?

VerifyVASP’s System Architecture

VerifyVASPs’ architecture is based upon a decentralized protocol that facilitates information sharing between VASPs, immediately and securely, via API communication while utilizing a robust encryption algorithm to secure data in transmission. The protocol mitigates risk associated with the sharing and transmitting of personal data while supporting the transfer of various types of digital assets on its decentralized architecture. 

Is VerifyVASP a Travel Rule solution or protocol?

VerifyVASP is a protocol.

Is VerifyVASP an open-sourced industry alliance network, a closed network, or a commercial solution?

VerifyVASP is a closed network Travel Rule messaging protocol.

Is VerifyVASP a fully integrated Travel Rule solution provider?

No. VerifyVASP is a protocol for secure and immediate data sharing amongst verified VASPs.

Is VerifyVASP complex to integrate?

No. VerifyVASP has a low and manageable integration effort with a simple API integration. 

What are the steps to implementing VerifyVASP?

1. Sign up as a VerifyVASP Alliance Member
2. Self-issue API-keys; namely accessKey and secretKey required to run the enclave server
3. Create a local database 
4. Implement Verify User API
5. Install and run enclave server
   

Notabene will be able to assist clients with each implementation step.

What is VerifyVASP’s governance model?

VerifyVASP’s governance model is centralized, comprising only Upbit. 

Does VerifyVASP support non-custodial wallets?

No. VerifyVASP does not support transactions to/from non-custodial wallets.

Is VerifyVASP live?

Yes, VerifyVASP is live.

Is there industry support for VerifyVASP?

Although VerifyVASP is a new protocol in its early days, there seems to be interest from Korean VASPs to support it.

What is VerifyVASP’s membership fee structure?

Companies may become alliance members at no cost. 

Does Notabene support VerifyVASP? 

Notabene is looking to add support for VerifyVASP in 2022.

How does VASP due diligence work on VerifyVASP?

Upon signing as an alliance member of VerifyVASP, the VASP will be subject to the VV onboarding process and will receive an email requesting for KYC documentation necessary to satisfy its onboarding requirements and mitigate against AML and CFT risk. VV will check / verify the licensing status of the relevant VASP and conduct connected person (directors, UBOs, authorized persons, etc.) name and wallet screening. Once the documents submitted are verified and onboarding requirements satisfied, the particular VASP can commence the technical integration process as the new alliance member. [From the VerifyVASP website.]

What are the benefits of using VerifyVASP?

• Simple API integration
• Send Travel rule transactions to South Korea’s major exchanges
  

What are the drawbacks of using VerifyVASP?

• Access to a limited number of counterparties. For many companies, it is not enough to only integrate VerifyVASP, as they will likely have counterparties outside of the group of VerifyVASP supporters.
  

Has there been a test net using VerifyVASP?

There has not been a testnet using VerifyVASP. However, VerifyVASP does have a sandbox for VASPs to test the protocol. 

Verify VASP for Developers

VerifyVASP Alliance Members are invited to connect to the Value Transfer Protocol Solution via API connectivity. Each Alliance Member is required to integrate with VerifyVASP’s servers by downloading a Docker image and using it to host their enclave server in their own environment. 

The API key allows interaction between the enclave server hosted by the individual Alliance Member and VerifyVASP’s Central API Server. Each Alliance Member must implement the User Validation API to access VerifyVASP’s enclave server hosted in their environment.

VerifyVASP Open API Documentation

Click here to visit VerifyVASP’s documentation.

What are the features?

Click here to visit VerifyVASP’s documentation.

• Communication through a local enclave server
• Central API that manages routing