Trust Infrastructures for Virtual Asset Service Providers
This work tackles regulatory and technological issues for VASPs, but it is incremental as it discusses existing concepts without introducing new methods.
The paper addresses challenges faced by Virtual Asset Service Providers (VASPs) in securely exchanging customer information for regulatory compliance, proposing trust infrastructures such as information sharing networks, identity verification, and attestation systems to improve interactions and user experience.
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.