VaVite: Verifiable Information Exchange for Virtual Asset Service Providers

Virtual Asset Service Providers (VASPs) have recently been faced with increased compliance costs as both national and international bodies bring their due diligence compliance requirements inline with those of traditional financial entities. The `travel rule', as defined by the Financial Action Task Force (FATF) is prominent amongst these and has created a need for efficient compliance solutions for VASPs. In this paper we improve upon current travel rule compliance solutions by utilising a mixed centralised and decentralised approach to provide trust and reduce the compliance burden on VASPs. Moreover, we provide a generic system capable of ensuring compliance with FATF recommendations as well other sanctions and embargoes that impact VASP trading relationships.