Crypto Travel Rule Working Group Launches 2.0 Protocol to Solve Findability Problem – Regulating Bitcoin News

Just before the Financial Action Task Force (FATF) released the organization’s 12-month report, a working group called Travel Rule Protocol (TRP) released their 2.0 version of the TRP Crypto Application Programming Interface (API) to “make the end easier “. -User experience with the crypto exchange. ” TRP is supported by major banks such as Fidelity Investments, Standard Chartered and ING Bank, as well as 25 virtual currency service providers (VASPs).

Travel rule-focused crypto working group publishes protocol version 2.0

The Travel Rule Protocol (TRP) is an organization that aims to improve crypto financial transaction data to comply with the KYC / AML policy. The organization is supported by major financial institutions and crypto exchanges and custodians such as Bitgo, Coinbase, Kraken and Gemini.

The Travel Rule Protocol (TRP) was unveiled last year when 25 American VASPs released a paper showing how companies plan to comply with FATF travel rules. The organization has also released a TRP crypto application programming interface (API) version 1.0 and the product is a solution for any organization to identify data associated with crypto transactions and meet the requirements of the FATF-based travel rule.

This week the TRP group released their 2.0 version of the protocol claiming that the solution is “built” [the] previous Travel Rule Protocol version 1.1.0 by adding an easy-to-use workflow for end users while solving the problem of discoverability. ”In addition, TRP 2.0 provides VASPs with an easy way to“ comply with FATF recommendations without placing additional burden on end users ”.

The organization believes that implementing the TRP API for VASPs is easy to integrate into their existing framework. “A number of members of the TRP working group have created implementations of the TRP API that can be used out of the box,” said the launch announcement.

“It was important to the TRP Working Group that the end-user experience be as simple as possible and no more difficult than typical pre-travel industry existing practices,” said TRP Working Group Chair Andrew Davidson in a statement. “We decided on a workflow based on the existing LNURL standard, a bech32-coded 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 users’ needs while being an easy solution to implement or adopt, ”Davidson continued:

With the LNURL-based workflow, we have given end users an almost identical user experience that they are used to from existing virtual asset platforms, while at the same time complying with FATF recommendations and bypassing the complexities of VASP discoverability.

“TRP protects customers from criminal third parties”

The “travel rule” is basically a descriptive term for the rule of banking secrecy (BSA) [31 CFR 103.33(g)]. The rule essentially stipulates that all financial companies are obliged to pass on transmission data such as KYC / AML to the nearest financial institution. “The money transfer rules are designed to help law enforcement agencies detect, investigate and prosecute money laundering and other financial crimes by maintaining an information pathway about people who send and receive money through money transfer systems,” the financial regulators say.

The FATF’s 12-month review, which looks at Virtual Assets (VAs) and VASPs, highlights that the use of “anonymity tactics” and the “lack of effective” regulation continue to plague the cryptocurrency industry. If the TRP Working Group’s 2.0 Protocol API meets the FATF recommendations, it will likely follow the “certain threshold above which VASPs are required to conduct customer due diligence, USD / EUR 1,000”.

“The latest update to TRP 2.0 enables us and the virtual asset ecosystem as a whole to offer even more secure services and protect our customers from third-party criminals,” said Christopher Kiew-Smith, Chief Compliance Officer at Zodia, a member company of the TRP working group.

What do you think of the TRP API? Let us know what you think on this matter in the comments below.

Tags in this story

Bank Secrecy Act, BitGo, BSA, Coinbase, Crypto, Cryptocurrency, fatf, fidelity, Gemini, ing, Kraken, Regulations, Standard Chartered, Travel Rule, Travel Rule FATF, Travel Rule Protocol, TRP Working Group, VAs, VASPs, virtual assets

Photo credits: Shutterstock, Pixabay, Wiki Commons

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