Coinplug announces DID-based travel rule solution ‘TX Rule’

On September 9, Coinplug, a blockchain technology company, announced the ‘TX Rule’, a DID (Decentralized Identification)-based Travel Rule (a rule requiring confirmation of cryptocurrency sender and recipient information) solution. The Travel Rule is included in the FATF recommendation also reflected in the Specific Financial Transaction Information Reporting and Use law passed in March 2020. The ‘TX Rule’ released by Coinplug utilizes Metadium-based DID authentication. It is a solution that protects the wallet address of virtual asset providers by using DID; it tags existing wallet address instead of manually providing information. It will be conducted in collaboration with domestic and foreign exchanges and other VASPs(Virtual Asset Service Providers) that require AML (Anti-money Laundering) wallet address services. In a joint consortium method in which various virtual asset providers participate, you can check not only the exchange but also the address transaction details of the individuals’ wallets. The Specific Financial Transaction Information Reporting and Use Law entrusted the scope of VASPs, real-name accounts, and the so-called Travel Rule in the Telegraphic Transfer Law to the enforcement decree. The draft enforcement decree will be released during this month. There are various travel rule solutions are coming out from domestic and foreign sectors, but each company has different methods, which caused confusion in understanding the information of the sender and receiver. However, with “TX Rule”, the company explained that it will provide an opportunity to active cooperation between the existing trading platform and the exchanges. Coinplug officials said, “Because the ‘TX Rule’ is based on DID, unlike the existing method, customer information will be encrypted and information is provided only on the subject to be reported. Thus there are no concern of personal information leakage. We plan to connect with foreign exchanges in the future by complying the global standards.” ※This article is published with the permission of Blockmedia.

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