Since the FATF revised its Recommendation 16 – the so-called ‘Travel Rule’ – in June 2019 to include Virtual Asset Service Providers (VASPs), regulators across the world have been been busy transposing the new guidelines into their national law codes, and compelling VASPs to comply.
While complying with the new reporting requirements has not been easy, there are a growing number of interesting projects that have emerged over the last few years that are attempting to provide solutions to the challenge of regulatory compliance for VASPs, in particular in relation to the FATF Travel Rule.
The best out there each offer certain benefits in specific, unique ways that are suited to different situations and objectives. All of them are contributing to the creation of safer, more effective and efficient systems for crypto-based activity, and KYC-Chain is proud to be a part of this global, decentralized movement to improve the ways individuals and companies transact with one another.
So, with that in mind, let’s take a look at how the KYC-Chain Travel Hub compares to other solutions found on the market.
- OpenVASP is a non-profit organization that has created a decentralized, open-source network for VASPs to exchange information in compliance with the Travel Rule.
- As a non-profit, OpenVASP offers the clear benefit of being open to any VASP that seeks to use it. The organization also promotes innovation in the VASP/Compliance space by funding the implementation of open-source technology that can help VASPs comply with FATF regulations. It currently does not have membership fees, but OpenVASP network users are required to implement its protocols through the use of one of its private implementation partners.
- Netki is one of the veterans in the Travel Rule compliance space: its TransactID solution has been around since 2016, and works across all private and public blockchains with both custodial and non-custodial wallets, so it’s primed for interoperability. TransactID also supports privacy coins, and is an open standards-based solution, though certificates are fee-based.
- Like the SelfKey Compliance Hub, Netki’s TransactD offers a complete end-to-end compliance solution for VASPs.
- TRISA is a non-profit, open-source Travel Rule compliance project that implements the InterVASP Message Standard 101 (IVMS) “to standardize Travel Rule message data fields” using the TRISA VASP Directory, which includes location data and contact information for over 800 VASPs. TRISA works by providing VASPs with a way to assess whether data transmission requests are compliant with the Travel Rule through the use of a proven Certificate Authority (CA) model.
- While TRISA is open source and free to join, it does have certain limitations. Being a fully open source project with no initial signup costs, VASPs that do choose to use the network for data transmissions will need to take responsibility for maintenance and integration themselves.