VerifyVASP was developed by Lambda256, an affiliate of Dunamu, the operator of Korea’s largest cryptocurrency exchange Upbit. The protocol shot to prominence in March 2022 as South Korean VASPs sought to meet their travel rule obligations by 25 March 2022.
At the time, international VASPs who wished to continue to transact with Upbit had little choice but to implement VerifyVASP. During this period, a simplier version of the protocol - VerifyNAME - was introduced for international VASPs.
|Originally, the four major cryptocurrency exchanges in South Korea - Upbit, Bithumb, Coinone and Korbit - decided to launch a joint venture to co-develop solutions for travel rule, however Dunamu opted out citing the move as being perceived as collusion by the major players.|
Veriscope supports advanced workflows including the exchange of encrypted IVMS data between VASPs and accept/reject. VASPs have the option to soft reject and request further information or else hard reject and decline to send or receive the transfer.
Sequence diagram text file
To generate or update the diagram above, paste the following into https://sequencediagram.org/
title VerifyVASP workflow sender->oVSAP:Submit withdrawal request (select bVASP, provide recipient info) oVASP->VV_central_server:Check bVASP (Know Your VASP) oVASP->VV_central_server:Request bVASPs public key VV_central_server->bVASP:Request bVASPs public key oVASP->oVASP:Encrypt sender info with bVASPs public key VV_central_server->bVASP:Send encrypted info to bVASP bVASP->VV_central_server:Provide verification on recipient info VV_central_server->oVASP:Provide verification result oVASP->oVASP:on-chain transfer oVASP->VV_central_server:Report transaction (trxn hash, verification ID) VV_central_server->bVASP:Report transaction
For further information, see Product Overview: Architecture