Who stores the transmittal information?
Both VASPs are required to store information in each transfer request.
Originator VASPs should store the beneficiary user information provided by the originator user and the Travel Rule Compliance Certificate provided by the beneficiary VASP.
Beneficiary VASPs should store the originator user information provided by the originator VASP.
FATF Recommendation 16 states that exchanges must share personal information with counterparties. How does CoolBitX ensure that personal information and other data remain private and hack-proof?
Sygna Bridge uses top-level cryptographic encryption to ensure personal information sharing remains private and secure.
During the registration, VASP members must generate a key pair of private and public keys to manage their data transmittals. The Sygna Bridge design requires the originator VASP to encrypt personal information using the beneficiary VASP’s public key.
This ensures only the corresponding VASPs can access personal information. No third party, Sygna Bridge included, can access the privacy data during the information-sharing process.
How many currencies and programming languages do you support?
Sygna Bridge is an off-chain solution that supports over 2,000 currencies including most of the publick blockchain, ERC-20 tokens, Tron and Omni tokens, except privacy coins.
Why should VASPs use Sygna Bridge?
To comply with the FATF Recommendation 16, Originator and Beneficiary VASPs will have to overcome a lack of native ownership attribution features in blockchain technology and find a way to share data with counterparties without breaking privacy laws or compiling inaccurate data.
They will need to be able to identify each other and distinguish between a VASP and an individual crypto trader and ensure that whatever solution they employ keep cryptocurrency transmittals quick and low-cost despite sizable linguistic, jurisdictional and time zone barriers between VASP counterparts.
In addition to this, exchanges will have to minimize the fallout that will come with the expected exodus of libertarian and privacy-concerned users from its platforms in favor of decentralized and (for now) anonymous personal crypto wallets.
Lastly, VASPs will have to find a way to implement a solution before June 2020 that preferably forms part of a global network that embraces regulatory oversight, remains resilient against security threats and criminal activity, and supports crypto-focused law enforcement efforts in local jurisdictions.
The FATF jurisdictions are currently considering and developing various solutions to implement Recommendation 16’s requirements and remain compliant. This means that on a country-level, VASPs will be subjected to higher domestic regulatory pressure and more comprehensive Know-Your-Customer (KYC) standards to prove that they’re compliant with FATF’s guidelines.
VASPs and financial institutions that fail to meet their country’s requirements could expect punitive measures that prohibit them from operating on profitable global markets, opening traditional banking accounts, or forces them to shut down altogether, as can already be witnessed in South Korea.
Thus, it will be in the best interests of VASPs to utilize a secure and reliable service like Sygna Bridge. Benefits of Sygna Bridge: Timely Implementation Turn compliance into a competitive advantage. Integrate with our API and alliance network within 6 weeks, without disrupting your day-to-day business.
Cost-effective compliance Compliance with Recommendation 16 does not necessitate a reinvention of the wheel. Share the right information with the right parties in a standardized format at economical rates.
Flexible simplicity Simple one-time integration is all it takes to connect you with our growing VASP network that supports all virtual asset types. Our flexible technology can adapt to regional differences and future regulatory changes. Secure and Reliable Data Keep your data secure and off-chain.
Sygna Bridge encrypts your Personally Identifiable Information (PII) with the VASP counterpart’s public key so that only the specified VASP counterpart can decrypt your Personally Identifiable Information. We never collect or access any private data.
What is Sygna Bridge?
Sygna Bridge is a “Crypto Travel Rule” compliance solution. Our first-to-market messaging network which helps virtual asset service providers (VASPs) share transmittal data with counterparties securely and accurately to meet their national regulatory requirements as mandated by the FATF Recommendation 16.
Sygna Bridge acts as a compliance layer and global database for all virtual asset service providers, without collecting or accessing any private data. It works with all virtual assets. The easy-to-integrate API creates an encrypted and private communication tunnel between VASP counterparts to share originator and beneficiary data for any virtual asset transaction.
Each VASP in the network is issued a unique identity shortcode after passing a compliance check, which helps exchanges to identify each other when transacting, verify the origin of transactions and choose whether to accept or reject any incoming transmittals.
The process is automated and every message sent between VASPs is paired with a corresponding signature to ensure data integrity. Sygna Bridge’s technology is considered unique as it connects VASPs with minimum disruptions to their business model at a very low cost, and provides the highest security standards for connections in HTTPs SSL certificates, API key and private data encryption.
What Sygna Bridge offers to the industry?
Here are what Sygna Bridge brings to the industry:
– Minimizes the regulatory impact and avoid adoption barriers, by being quick and painless to integrate.
– Affordability to implement, to accommodate smaller VASPs, and keep technological innovation alive.
– Establishes a global standard for virtual asset transmittals that can be used by all VASPs and applies to all virtual assets.
– Adheres to regulatory parameters, be adaptable to regional frameworks, and be flexible enough to accommodate future regulations.
– Provides a timely implementation with VASP platforms.
– Complements law enforcement activities to build cases against money launderers, terrorists, and other serious financial crime suspects.
– Generates reliable data by verifying the integrity of shared information.
– Proactively detect suspicious activities and the true origin of incoming transmittals.
– It is scalable, maintainable, and reliable, around the clock.
– It garners significant industry support and widespread VASP adoption.
I am interested in the Sygna Bridge, what is the next step?
To find out more about this innovative Recommendation 16 network for VASPs, please contact [email protected]
How does Sygna Bridge work?
Here are the processes Sygna Bridge executes when a transfer is initiated:
A. Originator VASP:
1. Your customer provides the beneficiary virtual asset address and Travel Rule-required information in the Sygna Bridge VAAI (Virtual Asset Account Information) system on your withdrawal page.
2. If you have an existing AML and compliance-check in place or any other means of security filtration for a withdrawal request, please follow your original workflow.
3. Confirm the presence of the VAAI from the transaction details. If VAAI exists, please proceed with the Sygna Bridge information transfer process. If not, please follow your standard virtual asset transfer procedure. (Although the VAAI is optional for the transaction, it will be in your best interest to align with the FATF Recommendation 16 (Travel Rule))
4. Check the validity of the beneficiary VASP code with the Sygna Bridge public key as the beneficiary VASP code is provided and certified by Sygna Bridge’s signature that is constructed using its private key.
5. Use the beneficiary VASP public key obtained from the Sygna Bridge to encrypt the customer’s private information.
6. Use your own VASP private key to construct a signature of the “Permission Request” that includes the encrypted customer’s private information and the transaction data.
7. Post the signed “Permission Request” to the Sygna Bridge.
8. Sygna Bridge then forwards the signed “Permission Request” to the beneficiary VASP.
B. Beneficiary VASP:
1. The “Permission Request” will be sent to your API endpoint from the Sygna Bridge.
2. Validate the signature of the “Permission Request” with the originator VASP’s public key obtained from the Sygna Bridge.
3. Decrypt the encrypted data with your own VASP private key. (The VASP private-key and public-key pair are generated when you sign up for the Sygna Bridge service. However, only the VASP public-key is kept at Sygna Bridge for all VASP members).
4. Store the “Permission Request” and private information in your database for future reference.
5. If you have an existing AML and compliance-check in place or any other means of security filtration for a deposit, please follow your original workflow.
6. Based on the compliance check, generate the “ACCEPTED” or “REJECTED” message through the Sygna Bridge.
7. Use your own VASP private key to sign the message and post it to the Sygna Bridge.
8. Sygna Bridge then forwards the signed message back to the Originator VASP.
C. Originator VASP:
1. A permission message will be forwarded to your API endpoint from the Sygna Bridge.
2. Store the permission status and signature in your database for future reference.
3. If the permission status from the beneficiary VASP is “ACCEPTED”, execute the requested virtual asset transfer. If the status is “REJECTED”, share the error message with the originator user.
4. Once you’ve received the transaction ID from the blockchain node, post the transaction ID to the Sygna Bridge to complete the workflow.
For further information: Developer.sygna.io