Introducing CODE, the global leading Travel Rule solution

CODE (Connect Digital Exchanges) is a Travel Rule solution created by leading virtual asset exchanges in South Korea to comply with global regulations on the transfer of virtual assets.

CODE, crafted directly by virtual asset exchanges, stems from an in-depth understanding of the challenges confronting the virtual VASP(Virtual Asset Servcie Provider) landscape. CODE is dedicated to build an environment which enables easy, secure, and fully compliant virtual asset transfer.

CODE's Travel Rule solution follows the FATF guideline perfectly, allowing exchange of originator and beneficiary information among VASPs.

CODE provides a secure channel for the originating VASP and beneficiary VASP to trade users' Travel Rule data. During this process, all user personal information is encrypted to ensure that only the sending and receiving VASPs can decrypt it, keeping CODE completely blind to users' personal data. Through this, CODE offers a more secure and trustworthy environment from a security perspective.

CODE Workflow

Integration with the CODE solution can be accomplished in the following two ways:

  1. Prior to a blockchain transaction, an originating VASP and a beneficiary VASP exchange Travel Rule data.
  2. After a blockchain transaction, to post-process an already executed anonymous blockchain transaction, a beneficiary VASP queries an originating VASP and requests the necessary data.

Let's take a look at the detailed flow for each case.

Pre-Travel Rule, Post-Transaction

Generally, when complying with Travel Rule regulations for the deposit and withdrawal of virtual assets, the interaction flow proceeds as described above. The reason for undergoing the verification step in case ① before making the withdrawal request is to prevent unnecessary transmission of user information due to incorrect requests.

The data being verified includes the recipient's user identity information, wallet address, and counterparty VASP information. Among these key pieces of information for the Travel Rule, obtaining accurate beneficiary VASP information is particularly important.

Until now, information about the counterparty VASP has primarily been obtained from the user. Typically, users are asked to input details about the beneficiary and their VASP during the withdrawal process. Although this method is easy and straightforward to implement, it can negatively impact the user experience by adding an extra task for the user. More fundamentally, there is the issue that users often do not know the name of the beneficiary exchange.

To move away from this traditional approach and enable VASPs to take a more proactive role in addressing this issue and improving the user experience of the withdrawal process, CODE offers an additional option for the originating VASP to search beneficiary VASP by a wallet address.

Search VASP by Wallet

'Search VASP by Wallet' enables CODE to search for the associated VASP by wallet address and return the result. Although this asynchronous process may occasionally cause a slight wait time for the user, it offers significant advantages, such as enhancing the user experience and providing highly reliable data. Additionally, it can help reduce customer service inquiries related to the Travel Rule and facilitate smoother processing. For further information, refer to the Search VASP by Wallet Request page.

These approaches for acquiring beneficiary VASP information complement each other. Select the method that aligns with your scenario to achieve the best user experience!

Pre-Transaction, Post-Travel Rule

In cases where incoming transactions lack Travel Rule data due to reasons such as sunrise issues or the 1 million KRW limit, it is typically impossible to verify the originating VASP and originator information. Consequently, the asset return process usually involves communication with the customer. This not only negatively impacts the customer experience and service reliability but also places a significant burden on the teams responsible for customer support and operations.

To address this issue, CODE offers a feature that allows reverse query based on the 'TXID'. The receiving VASP will ask CODE to first identify the originating VASP by a TXID, and then request the beneficiary VASP the Travel Rule data. This enables the beneficiary VASP to handle anonymous incoming transactions in full compliance with regulations.

Please refer to the Search VASP by TXID Request, Search VASP by TXID Result, Transfer Data Request pages for detailed information.

Integration Flow

The integration with the CODE proceeds in the order as above. Please make sure to check the Integration Checklist before launching after completing the development integration.