Encrypted PII Transfer Service for VASP Travel Rule Compliance
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Solution Overview
Problem
Existing systems for virtual asset service providers (VASPs) face challenges in securely exchanging personally identifiable information (PII) across different travel rule solutions, leading to transaction failures or reversals due to non-compliance, and establishing secure connections between VASPs with varying configurations is complex.
Innovation Solution
A PII transmission service that securely stores and manages PII on a database, enabling secure exchange of PII between VASPs by providing encrypted links or direct access, reducing implementation complexity through peer-to-peer endpoints and secure connections.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If VASPs establish secure connections to exchange PII directly, then transaction compliance is improved, but system complexity increases due to varying configurations
Solution Approach 1:
The patent introduces a PII transmission service as an intermediary between VASPs. This service receives PII from one VASP, validates it against travel rules, and securely transmits it to the destination VASP. This mediator approach eliminates the need for VASPs to directly configure secure connections with each other, thereby reducing system complexity while maintaining compliance reliability.
Solution Approach 2:
The PII transmission service provides universal functionality across different VASP configurations. It handles PII transmission for various travel rule scenarios (domestic, international, high-value transactions) through a single unified system, eliminating the need for each VASP to implement multiple specialized connection protocols.
2Reliability
If VASPs implement comprehensive PII collection and verification, then regulatory compliance is improved, but operational complexity increases
Solution Approach 1:
The PII transmission service acts as an intermediary that handles all PII validation and compliance checking. It receives PII from the originating VASP, validates it according to travel rule requirements, and only transmits valid PII to the destination VASP. This removes the operational burden of compliance verification from individual VASPs.
Solution Approach 2:
The service enables VASPs to self-service their PII transmission needs through standardized API calls. VASPs simply initiate PII transmission requests without needing to understand or implement the complex compliance validation logic themselves, as the service handles this automatically.
3Productivity
If direct PII transfer between VASPs is enabled, then transaction speed is improved, but security risks increase
Solution Approach 1:
The PII transmission service serves as a secure intermediary that receives PII from the source VASP, validates it, and transmits it to the destination VASP through controlled channels. This intermediate step prevents direct exposure of PII between VASPs, reducing security risks while maintaining acceptable transaction speeds through efficient validation and transmission protocols.
Data Source
AI summary
Methods, systems, and devices for data management are described. A personally identifiable information (PII) transmission service may receive, from a first virtual asset service provider (VASP), a request to securely transfer PII of a first user of the first VASP to a second VASP, where the request includes the PII and is received based on a requested blockchain transfer of an amount of a crypto token from a first blockchain address of the first user and managed by the first VASP to a second blockchain address managed by the second VASP. The PII transmission service may encrypt the PII after receiving the request and store the encrypted PII of the first user at a database associated with the PII transmission service. The PII transmission service may securely transmit an indication of the encrypted PII stored at the database of the PII transmission service and accessible by the second VASP.