Trust Infrastructures for Virtual Asset Service Providers

TL;DR

This paper explores trust infrastructures for virtual asset service providers, addressing secure information sharing, trusted identities, attestation, and user-friendly integration to enhance compliance and security in virtual asset transfers.

Contribution

It proposes a comprehensive trust infrastructure framework for VASPs, including information sharing networks, identity verification, attestation, and user integration solutions.

Findings

Proposes a VASP information sharing network for compliance.

Introduces a trusted identity infrastructure for VASPs.

Suggests attestation mechanisms for wallet security.

Abstract

Virtual asset service providers (VASPs) currently face a number of challenges, both from the technological and the regulatory perspectives. In the context of virtual asset transfers one key issue is the need for VASPs to securely exchange customer information to comply to the Travel Rule. We discuss a VASP information sharing network as one form of a trust infrastructure for VASP-to-VASP interactions. Related to this is the need for a trusted identity infrastructure for VASPs that would permit other entities to quickly ascertain the legal business status of a VASP. For regulated wallets, an attestation infrastructure may provide VASPs and insurance providers with better visibility into the state of wallets based on trusted hardware. Finally, for customers of VASPs there is a need for seamless integration between the VASP services with the existing consumer identity management infrastructure, providing a user-friendly experience for transferring virtual assets to other users.