CODE (Connect Digital Exchanges) is a Travel Rule solution created by leading virtual asset exchanges in South Korea to comply with global regulations on the transfer of virtual assets.

CODE, crafted directly by virtual asset exchanges, stems from an in-depth understanding of the challenges confronting the virtual VASP(Virtual Asset Servcie Provider) landscape. CODE is dedicated to build an environment which enables easy, secure, and fully compliant virtual asset transfer.

CODE's Travel Rule solution follows the FATF guideline perfectly, allowing exchange of originator and beneficiary information among VASPs.

CODE Workflow

CODE provides a secure channel for the originating VASP and beneficiary VASP to trade users' Travel Rule data. During this process, all user personal information is encrypted to ensure that only the sending and receiving VASPs can decrypt it, keeping CODE completely blind to users' personal data. Through this, CODE offers a more secure and trustworthy environment from a security perspective.

The purpose of implementing phase ①, instead of proceeding directly with the transfer request, is to prevent the unnecessary sharing of user information due to incorrect requests. In this phase, beneficiary user's identification data, wallet address and beneficiary VASP information shall be verified.

Within these core data elements of the Travel Rule, securing precise information on the recipient VASP stands out as especially critical.

At this point, CODE provide two options.

The first option is to ask the user, as is common practice. This approach could potentially worsen the user experience (UX) by adding an extra step for the user. More fundamentally, there's the issue that users often do not know the name of the counterpart exchange.

To solve this problem, CODE offers a feature that identifies the exchange linked to a wallet address. Although this method isn't real-time and might lead to minor user wait times, it improves user experience by providing trustworthy data. This not only helps decrease customer inquiries regarding the Travel Rule but also reduces the time and resources needed to manage these inquiries. For further information, refer to the Search VASP by Wallet Request page.

These two approaches for acquiring beneficiary VASP information complement each other. Select the method that aligns with your scenario to achieve the best user experience!

Integration Flow

The integration with the CODE proceeds in the order as above. Please make sure to check the Integration Checklist before launching after completing the development integration.