Toward a Public-Key Management Framework for Virtual Assets and Virtual Asset Service Providers
Electronic version of an article published as [The Journal of FinTech, Volume 1, Number 1, 2021, 27 pages] [https://doi.org/10.1142/S2705109920500017] © [copyright World Scientific Publishing Company]
Posted: 8 Jul 2021
Date Written: May 6, 2020
The recent Financial Action Task Force (FATF) Recommendations define virtual assets and virtual asset service providers (VASPs), and require under the Travel Rule that originating VASPs obtain and hold the required and accurate originator information and the required beneficiary information on virtual asset transfers. In this paper, we discuss the notion of key ownership evidence as a core part of originator and beneficiary information required by the FATF Recommendations. We discuss the approaches to securely communicate the originator and beneficiary information between VASPs, and review the existing standards for public-key certificates as applied to VASPs and virtual asset transfers. We propose the notion of a trust network of VASPs in which originator and beneficiary information, including key ownership information, can be exchanged securely off-chain while observing the individual privacy requirements.
Keywords: Virtual asset, virtual asset service provider, blockchain, public-keycerticates, key management
JEL Classification: G1,G2,O33
Suggested Citation: Suggested Citation