Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Solving compliance for crypto businesses using Decentralized Identity – Pelle Braendgaard

73 views

Published on

https://ssimeetup.org/solving-compliance-crypto-businesses-using-decentralized-identity-pelle-braendgaard-webinar-60/
A new global framework for regulating the crypto industry is coming into place this year. One of the most important new rules that businesses interacting with crypto has to implement is what is known as the Travel Rule. The Travel Rule, which is also known as The Wire Transfer rule, requires a business managing crypto on behalf of their user to transfer KYC’d (Know-Your-Customer) Identity Information to a receiving institution. Pelle Braendgaard, CEO of Notabene, will share his insights and explain how his company is tackling this business challenge for the industry.

Complying with this rule provides many challenges for the industry. Several industry groups have already started to invent several new protocols to solve this. Notabene helps financial companies be compliant with new, global anti-money laundering (AML) regulations for crypto transactions coming into effect right now. Pelle believes this is a critical use case for SSI (Self-Sovereign Identity). In this talk, he will go over the rule itself, industry protocols, how he sees SSI can help here, and how they are helping to solve it.

Published in: Internet
  • Be the first to comment

  • Be the first to like this

Solving compliance for crypto businesses using Decentralized Identity – Pelle Braendgaard

  1. 1. Using Decentralized Identity to solve compliance for crypto businesses Pelle Braendgaard CEO @PelleB notabene.id SSIMeetup.orghttps://creativecommons.org/licenses/by-sa/4.0/
  2. 2. 1. Empower global SSI communities 2. Open to everyone interested in SSI 3. All content is shared with CC BY SA SSIMeetup.org Alex Preukschat @SSIMeetup @AlexPreukschat Coordinating Node SSIMeetup.org https://creativecommons.org/licenses/by-sa/4.0/ SSIMeetup objectives
  3. 3. Agenda ● Travel Rule & its impact ● OpenVASP ○ VASP Code and VAAN ● InterVASP IVMS-101 ○ Messaging standard for Travel Rule PII ● The Notabene solution ● Non-custodial wallets and SSI ● Questions
  4. 4. About Notabene? SSIMeetup.orghttps://creativecommons.org/licenses/by-sa/4.0/
  5. 5. Regulatory Compliance tools for Blockchain Companies Notabene helps financial companies be compliant with new, global anti-money laundering regulations for crypto transactions coming into effect right now. ● Entire founding team previously at uPort ● Believe strongly in SSI ● Entire architecture is based on SSI DIDs/VCs ● Blockchain and DID method agnostic SSIMeetup.orghttps://creativecommons.org/licenses/by-sa/4.0/
  6. 6. The Travel Rule SSIMeetup.orghttps://creativecommons.org/licenses/by-sa/4.0/
  7. 7. FATF Recommendation 16 SSIMeetup.orghttps://creativecommons.org/licenses/by-sa/4.0/
  8. 8. Who is the FATF? SSIMeetup.orghttps://creativecommons.org/licenses/by-sa/4.0/
  9. 9. ● Introduces global framework ● Applies the Travel Rule to Crypto ● New definition of VASP (Virtual Asset Service Providers) ○ Crypto/Crypto Exchanges ○ Crypto/Fiat exchanges ○ Any custodial key management service ○ Token Issuance platforms 2019 Guidance for Virtual Assets SSIMeetup.orghttps://creativecommons.org/licenses/by-sa/4.0/
  10. 10. Direct Bitcoin Transaction SSIMeetup.orghttps://creativecommons.org/licenses/by-sa/4.0/
  11. 11. Custodial Bitcoin Transaction today SSIMeetup.orghttps://creativecommons.org/licenses/by-sa/4.0/
  12. 12. Travel Rule Bitcoin Transaction SSIMeetup.orghttps://creativecommons.org/licenses/by-sa/4.0/
  13. 13. Travel Rule has several Identity Related challenges SSIMeetup.orghttps://creativecommons.org/licenses/by-sa/4.0/
  14. 14. Sharing customer’s Personal Identifying Information (PII) with beneficiary institution SSIMeetup.orghttps://creativecommons.org/licenses/by-sa/4.0/
  15. 15. Originating VASP ● Is my counterparty regulated? ● Do they have proper AML/KYC policies ● Who are they? ● Can I trust them with my customer’s PII? Know Your VASP Beneficiary VASP ● Is my counterparty regulated? ● Do they have proper AML/KYC policies ● Who are they? ● Did they properly KYC the Originating Customer? SSIMeetup.orghttps://creativecommons.org/licenses/by-sa/4.0/
  16. 16. OpenVASP SSIMeetup.orghttps://creativecommons.org/licenses/by-sa/4.0/
  17. 17. Open protocol to implement FATF’s travel rule for virtual assets ● Functionally similar to SWIFT ● Strong decentralized design ● Blockchain agnostic ● Based on Decentralized Identity ● OVIPS (OpenVASP Improvement Proposals) ○ https://github.com/OpenVASP/ovips https://openvasp.org SSIMeetup.orghttps://creativecommons.org/licenses/by-sa/4.0/
  18. 18. Identifying a VASP using a VASP Code ● Similar to SWIFT Code ● Decentralized Issuance through smart contract on Ethereum Mainnet https://github.com/OpenVASP/ovips/blob/master/ovip-0003.md ● Will become a DID method ● On-chain Credential Registry https://github.com/OpenVASP/ovips/blob/master/ovip-0012.md ● VASP Verifiable Credential https://github.com/OpenVASP/ovips/blob/master/ovip-0015.md SSIMeetup.orghttps://creativecommons.org/licenses/by-sa/4.0/
  19. 19. Identifying a customer using a VAAN ● Similar to IBAN Code ● Used instead of Blockchain Address ● Issued by VASP and tied to a VASP https://github.com/OpenVASP/ovips/blob/master/ovip-0002.md ● Not really SSI as issued by VASP ● Better Privacy than Blockchain Address ● Maybe VAAN DID method? t = VASP Code Type r = Reserved bits v = VASP Code c = Internal Identifier x = Check Digits tt | rr | vvvvvvvv | cccccccccc | xx 10 | 00 | bb528777 | e33b078520 | 9e SSIMeetup.orghttps://creativecommons.org/licenses/by-sa/4.0/
  20. 20. IVMS-101 SSIMeetup.orghttps://creativecommons.org/licenses/by-sa/4.0/
  21. 21. InterVASP IVMS-101 Universal common language for communication of required originator and beneficiary information between virtual asset service providers ● Originating customers PII ● Just data model ● Could be wrapped in VCs https://intervasp.org/ SSIMeetup.orghttps://creativecommons.org/licenses/by-sa/4.0/
  22. 22. Notabene Travel Rule Solution SSIMeetup.orghttps://creativecommons.org/licenses/by-sa/4.0/
  23. 23. Travel Rule Dashboard ● Send Travel Rule Transactions ● Handle incoming transactions ● Travel Rule protocol agnostic ○ Support OpenVASP now ● Blockchain agnostic SSIMeetup.orghttps://creativecommons.org/licenses/by-sa/4.0/
  24. 24. Know Your VASP Trust Framework ● Built on SSI ● DID’s for VASPs ● Issue VC’s ● Public VCs ○ https://vasps.id ○ OpenVASP Registry ● Selective Disclosure ○ Request and exchange private VCs ● Integrated into Travel Rule workflow SSIMeetup.orghttps://creativecommons.org/licenses/by-sa/4.0/
  25. 25. VASPs.id ● Free public directory of VASPs ● Initially based on web DIDs and Verifiable Credentials https://w3c-ccg.github.io/did-method-web/ ● Adding support for new OpenVASP directory SSIMeetup.orghttps://creativecommons.org/licenses/by-sa/4.0/
  26. 26. The Travel Rule and Non-Custodial Wallets SSIMeetup.orghttps://creativecommons.org/licenses/by-sa/4.0/
  27. 27. Non-Custodial Wallets do not need to implement travel rule ● VASPs will be required to prove ownership of addresses to support Non-Custodial Wallets ● Ideally SSI functionality can be built in ● Notabene allows VC like Ownership Proofs to be issued by the majority of wallets SSIMeetup.orghttps://creativecommons.org/licenses/by-sa/4.0/
  28. 28. Concordium - Identity Verified blockchain SSIMeetup.orghttps://creativecommons.org/licenses/by-sa/4.0/
  29. 29. Please reach out Pelle Braendgaard CEO @PelleB pelle@notabene.id notabene.id Future work in SSI ● Would like to support all SSI wallets ● Consume credentials from 3rd party credential issuers ● Help Blockchain wallets to add basic SSI functionality

×