21 Travel Rule and the AOPP Portal
Many jurisdictions have extended their implementation of the Travel Rule to include self-hosted wallet transactions if a regulated entity, like a VASP, is involved. Usually, this involves the identification of the originator and beneficiary but can include wallet proof of ownership in certain circumstances.
Additionally, jurisdictions like Switzerland, the UK, and Singapore, require that this proof of ownership be done via a technical means like a Satoshi Test or digital signature. In line with these requirements, 21 Travel Rule simplifies this process for VASPs by enabling seamless proof of ownership experience through the AOPP Portal.
The AOPP Portal was designed to facilitate wallet ownership for both VASPs and customers. Using a link issued in the AOPP Portal, wallet owners (VASP customers) can prove ownership instantly with no interruptions in their transaction experience. VASPs benefit from the automated nature of this solution: all that is required is sending a link to the wallet owner. The rest is done automatically, ensuring full Travel Rule compliance.
Below, we explain the AOPP Portal flow from a VASP and wallet owner’s perspective if the process were to be completed manually. However, via integration with our API, this process can be 100% automated.
Download the AOPP Portal Guide
How the AOPP Portal Works From a VASP’s Perspective
In the 21 Travel Rule software, after navigating to the Self-hosted Wallets tab, AOPP Portal Link is to be selected.
Next, a pop-up will appear. Here, the customer ID and the digital asset address type are to be confirmed.
Another pop-up will appear with a unique link to be shared with the wallet owner to complete the proof of ownership process.
The wallet owner will open the link and complete the proof of ownership process by following the prompts on their screen and wallet. Once completed, the signed proof will appear automatically under the Self-hosted Wallets tab in the 21 Travel Rule Compliance Dashboard, complete with its risk score, all in seconds.
How the AOPP Portal Works From a Self-hosted Wallet Owner’s Perspective
The wallet owner will initiate a transaction at their exchange.
Next, they will open the AOPP Portal link they received and confirm their wallet type.
After confirming their wallet type, a pop-up will appear directing them to this wallet along with the wallet signing instructions.
The wallet owner will complete the signing process, which normally involves confirming that the hash displayed in the pop-up matches the one displayed in their wallet. Once completed, the wallet owner will receive 2 confirmations: a success message in their wallet and one in the AOPP Portal confirming that their address has been successfully registered and they are able to transact.
The Benefits of the AOPP
AOPP is one of the best proof of ownership methods for various reasons.
AOPP is 100% Travel Rule compliant, it meets the requirements put forward in FINMA, the TFR, and various other jurisdictions’ Travel Rule implementations.
As it is deployed on-premises it is completely GDPR compliant.
AOPP does not require address reuse, and so preserves conventional best practices for your business’ confidentiality.
Because addresses are not copied and pasted as with traditional manual signing methods, MITM attacks from crypto-malware are minimised.
AOPP is more reliable than screenshots and video proofs, which can be easily manipulated by senders. Moreover, it is easier and cheaper to perform when compared to Satoshi Tests.
Find out more about AOPP - get in touch with one of our experts.
