Both solution providers will integrate their crypto Travel Rule compliance solutions to facilitate secure data sharing in the digital asset ecosystem.
SINGAPORE, May 2, 2024 -- Sumsub, a global full-cycle verification platform, has announced its integration with CODE, a Travel Rule compliance solution. Both companies will collaborate to facilitate secure and immediate data sharing among Virtual Asset Service Providers (VASPs), aligning with Travel Rule compliance requirements for virtual asset transactions. In addition to the integration, CODE will refer Sumsub's Know-Your-Customer (KYC) solution to its clients for enhanced user onboarding and verification processes.
The partnership between Sumsub and CODE will make it easier for VASPs in different regions to work together. This integration aims to build interoperability in the crypto sector, enabling VASPs to access a broader network of counterparties they can transact with. It will also mitigate the 'sunrise issue', which refers to the challenge of uneven Travel Rule enforcement across different jurisdictions—creating hurdles for digital asset providers to connect, comply, and maintain transparency.
Travel Rule regulations currently extend the Financial Action Task Force's (FATF) Recommendation 16 (R.16) to virtual assets and their providers. The legislation, enforced independently by different jurisdictional regulators, mandates that both senders and recipients of all virtual assets transfers exchange accurate identifying information, and convey the data to government authorities when required.
At present, regulators enforce the Travel Rule legislation at different rates. In the Asia-Pacific (APAC) region, Singapore integrated the Travel Rule into its Payments Service (PS) Act which came into effect in January 2020, while South Korea implemented similar legislation in March 2022. Both Japan and Hong Kong began to enforce the Travel Rule for crypto transactions in June 2023.
At present, CODE's South Korea operations focus primarily on collaboration between domestic companies and those in neighboring markets. With a global ecosystem of VASPs, Sumsub will facilitate compliant Travel Rule data transfers for CODE's clients, thereby bridging the gap between VASPs in APAC and counterparties not just in neighboring markets, but worldwide.
We are excited about our partnership with CODE, as it marks another significant step forward in fostering a secure environment across the crypto sector. Through this partnership, we aim to lead the way in interoperability, setting a standard for data sharing that may become a mandatory industry practice in the future," said Jacob Sever, Co-Founder and Chief Innovation Officer at Sumsub. "Interoperability is a core belief for us, reflected in our solution's ability to integrate with various protocols and expand our clients' network access. While progress has been made, there's still much to achieve, and we look forward to supporting further initiatives in the industry."
"We are delighted to partner with Sumsub in assuring Travel Rule compliance for the digital asset industry. This collaboration underscores our commitment to fostering seamless data sharing and enhancing regulatory compliance standards. Together, we aim to empower VASPs globally, driving innovation and trust in digital asset transactions," said Sungmi Lee, CEO at CODE.
In addition to CODE, Sumsub is actively collaborating with partners to promote open standards that enable information sharing for virtual asset transfers. In March 2024, Sumsub partnered with Binance, integrating with its Global Travel Rule (GTR) Alliance to streamline Travel Rule compliance for VASPs, and with Mercuryo, a global payments infrastructure platform, to release an in-depth guide for VASPs to navigate Travel Rule compliance.
For more information, please visit:
https://sumsub.com/travel-rule/.
About CODE
CODE is a Travel Rule solution provider headquartered in South Korea and jointly established by three major Korean digital asset exchanges (Bithumb, Coinone, and Korbit). It complies with global Travel Rule standards that meet the criteria of the Financial Action Task Force (FATF) and regulatory agencies.
CODE provides specialized technology solutions and tailored compliance services for virtual asset service providers (VASPs) worldwide (83 entities across 35 countries). Strengthening its network, CODE creates synergy through coordinated responses to financial authorities and regulatory agencies facilitating the seamless global implementation of the Travel Rule. To find out more, visit www.codevasp.com
About Sumsub
Sumsub is a full-cycle verification platform that secures the whole user journey. With Sumsub's customizable KYC, KYB, Transaction Monitoring and Fraud Prevention solutions, you can orchestrate your verification process, welcome more customers worldwide, meet compliance requirements, reduce costs, and protect your business.
Sumsub has over 2,000 clients across the fintech, crypto, transportation, trading, e-commerce and gaming industries including Binance, Wirex, Avis, Bybit, Huobi, Flutter, Kaizen Gaming, and TransferGo.
Logo - https://mma.prnewswire.com/media/2099263/Sumsub_Logo.jpg
