Global full-cycle verification platform Sumsub has partnered with Travel Rule compliance solution CODE . The collaboration aims to facilitate secure and immediate data sharing among Virtual Asset Service Providers (VASPs) to meet Travel Rule compliance requirements for virtual asset transactions.

Additionally, CODE will refer Sumsub’s Know-Your-Customer (KYC) solution to its clients for improved user onboarding and verification processes. In essence, the partnership between Sumsub and CODE seeks to ease collaboration among VASPs in different regions, supporting interoperability in the crypto sector and broadening access to counterparties. This integration also aims to address the 'sunrise issue', which pertains to varying Travel Rule enforcement across jurisdictions, hindering digital asset providers' connectivity, compliance, and transparency.

More information about the Travel Rule The Travel Rule, which is a set of guidelines introduced by the Financial Action Task Force (FATF), requires financial institutions engaged in virtual asset (VA) transfers to collect and share the personal data of senders and recipients in transactions. Adherence to the Travel Rule involves key anti-money laundering (AML) and counter-terrorism financing (CTF) measures that enable VASPs and financial institutions to stay fully compliant with cryptocurrency regulations, avoid regulatory penalties, and maintain their licenses. Enforcement of Travel Rule regulations varies across jurisdictions.

In the Asia-Pacific (APAC) region, Singapore and South Korea implemented Travel Rule legislation in January 2020 and March 2022, respectively, while Japan and Hong Kong followed suit in June 2023. CODE’s operations in South Korea primarily focus on collaboration between domestic companies and neighbouring markets. Sumsub's global ecosystem aims to facilitate compliant Travel Rule data transfers for CODE’s clients, bridging the gap between VASPs in APAC and counterparties worldwide.

In the official press release, representatives from Sumsub emphasised the partnership's significance in supporting a secure crypto environment and leading interoperability efforts. In turn, officials from CODE highlighted the collaboration's role in ensuring Travel Rule compliance and enhancing regulatory standards for the digital asset industry. Other developments from Sumsub Sumsub is actively engaged in promoting open standards for information sharing in virtual asset transfers.

Recent partnerships include integration with Binance's Global Travel Rule (GTR) Alliance and collaboration with Mercuryo to provide a Travel Rule compliance guide for VASPs. Specifically, in April 2024, Sumsub partnered with Mercuryo to publish a guide about Travel Rule for Virtual Asset Service Providers (VASPs). This guide provided information for businesses in the digital token sector on understanding and effectively implementing the Travel Rule to ensure compliance.

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