The document discusses the use of decentralized identity solutions to help crypto businesses comply with global anti-money laundering regulations, particularly addressing the FATF travel rule. Notabene is presented as a regulatory compliance tool for financial companies, facilitating identification and verification processes among virtual asset service providers (VASPs). It outlines various technological proposals, including OpenVASP and IVMS-101, designed to standardize the communication of customer information while maintaining privacy.

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. 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