Since September 1st, the Travel Rule regulations are in effect, and additional Travel Rule information will be required for all in-scope transactions. Therefore, Bitpanda Custody has made some changes that will affect the way you interact with the TrustVault systems.
Why has it changed?
In order to comply with the Travel Rule regulations, more information needs to be captured before transactions are signed and submitted to the network, and information must be provided for some assets received on-chain before they can be accessed. These regulations require parties involved in the transfer of an asset to provide information regarding the originator (party sending an asset) and the beneficiary (party receiving the asset).
What has changed?
The following TrustVault components have been affected:
- TrustVault x MetaMask
- TrustVault iOS
- TrustVault Web
- Trust API / trust-vaultnodejs-sdk
Transaction workflow
The way in which transactions are created, approved, and submitted to the network will change.
Current flow
This diagram shows how you can currently use the TrustVault Components to create transactions:
Currently, the general flow is:
- You send a transaction intent request.
- You have all required parties sign the transaction via the TrustVault app or via the Trust API.
- Bitpanda Custody signs the transaction.
- If explicitly requested, Bitpanda Custody submits the transaction to the network.
New flow
This diagram shows how the new flow will introduce additional steps to comply with the Travel Rule regulations:
The new flow will be:
- You send a transaction intent request.
- If required, you send the necessary Travel Rule information for the transaction.
- Bitpanda Custody Compliance will review and approve the information.
- You have all required parties sign the transaction.
- Bitpanda Custody signs the transaction.
- If explicitly requested, Bitpanda Custody submits the transaction to the network.
(*) Not all transfers are subject to the Travel Rule. Details on included and excluded transfers are outlined here.
Receiving assets into your accounts
Information is now required on some transfers into your accounts before you can make subsequent transactions with those assets.
Current flow
This diagram shows how balances are currently calculated for your accounts:
Currently, there is nothing you need to do to receive new assets into your accounts. When a transaction is seen on the network, your balance is updated immediately.
New flow
This diagram shows how the new flow will introduce additional steps to comply with the Travel Rule regulations:
The new flow will be:
- A transaction is seen on the network resulting in you receiving assets.
- If required, you submit Travel Rule information for the transfer.
- Bitpanda Custody Compliance approves the transfer(s).
- Your balance is updated, allowing you to spend the assets.
(*) Not all transfers are subject to the Travel Rule. Details on included and excluded transfers will be announced later.
New features coming to help with the Travel Rule
If you have any concerns or questions, please reach out to help@bitpandacustody.com.
API Changes (including the trustvault-nodejs-sdk)
There will be significant changes to our APIs to help with Travel Rule support. Changes include:
- The GraphQL schemas will change.
- The trustvault-nodejs-sdk will change.
- Some webhooks may change.
Changes that could break your integrations with us will be minimized, but you may need to adjust if you consume APIs in the coming months.
Further details can be found in either this article or our API documentation.