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.

1. Using Decentralized Identity to solve
compliance for crypto businesses
Pelle Braendgaard CEO @PelleB
notabene.id
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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
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SSIMeetup objectives

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. About Notabene?
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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
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6. The Travel Rule
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7. FATF Recommendation 16
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8. Who is the FATF?
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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
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10. Direct Bitcoin Transaction
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11. Custodial Bitcoin Transaction today
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12. Travel Rule Bitcoin Transaction
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13. Travel Rule has several
Identity Related
challenges
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14. Sharing customer’s Personal
Identifying Information (PII)
with beneficiary institution
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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?
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16. OpenVASP
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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
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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
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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
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20. IVMS-101
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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/
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22. Notabene Travel Rule Solution
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23. Travel Rule Dashboard
● Send Travel Rule Transactions
● Handle incoming transactions
● Travel Rule protocol agnostic
○ Support OpenVASP now
● Blockchain agnostic
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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
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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
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26. The Travel Rule and Non-Custodial Wallets
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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
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28. Concordium - Identity Verified blockchain
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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