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Uppsala Security’s Technology developed to address challenging Travel Rule Requirements is now Patented

Singapore, September 3rd, 2021Uppsala Security, a state-of-the-art provider of award-winning security tools and services for Crypto AML/CTF, Transaction Risk Management, Regulatory Compliance and Cyber Security announced today that its Travel Rule technology has been patented as of September 2nd, 2021.

The Travel Rule, which already applies to transfers of fiat currencies like US Dollars between financial institutions, is an anti-money laundering Recommendation issued by the Financial Action Task Force (FATF) in which the sender-receiver information has to be verified between Virtual Asset Service Providers (VASPs) when sending and receiving virtual assets. However, due to privacy laws, VASPs cannot share the user information with third parties. Hence, it is difficult to comply with the Travel Rule while sharing user information between VASPs. At the moment, there is no agreement that follows an international standard on the Travel Rule, and only a few solutions can entirely comply with the FATF’s Recommendations.

According to Uppsala Security, its registered Travel Rule patent was designed to comply with the Travel Rule while solving the current issues. VASPs can conduct their business operations using blockchain technology without the need to build a separate server having a high risk of data leakage. Also, it avoids the need to go through a separate KYC data decryption process and eliminates the need to share sensitive user information.

The patented technology has applied a technique that allows customers to share KYC information as encrypted data thus enabling VASPs to share it without exposing the sensitive data to other operators. The goal is to simplify the process of virtual asset transactions (sending and receiving) and to prevent any malicious activity that could lead to the theft of virtual assets because of data mismanagement or the leakage of confidential personal information by encrypting the personal information of users in such a manner that it cannot be decrypted.

When transmitting and receiving virtual assets, VASPs only need to compare the encrypted value of the user’s information without the sensitive information of the sender or the receiver being exposed. It is similar to the process used for trading items in a business modeling or simulation game, where we can exchange items through a trading system if we know the counterpart’s ID. In this manner, the private information of each counterpart in the trade is not exposed.

Patrick Kim, Founder & CEO at Uppsala Security said, “VASPs have to comply with the Travel Rule by the end of March 2022, but this is a very short time period for the international standard to be established and implemented. If everything can be coordinated and harmonized, we will be able to help maintain transaction liquidity and help keep users from leaving the ecosystem. After all, the key is to provide a Travel Rule standard for VASPs around the world.” He also added “There are many small and medium-sized exchanges that want to be licensed as virtual asset business providers. In the future, we would like to provide a solution for the Travel Rule to small and medium-sized exchanges free of charge. Basic functions can be provided free of charge, but additional costs may apply when linking with some of our other products to improve security.

About Uppsala Security Pte. Ltd.

Uppsala Security is headquartered in Singapore and has branch offices in Seoul, South Korea and Tokyo, Japan. Uppsala Security built and operates the world’s first crowdsourced Threat Intelligence Platform known as the Sentinel Protocol, powered by artificial intelligence, blockchain, and machine learning technologies. Supporting the framework is a team of experienced security analysts and researchers committed to helping organizations realize safely interconnected experiences by deploying a suite of advanced Risk Management Solutions satisfying the crypto security needs of organizations and regulation compliance standards worldwide.

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Sentinel Protocol Team

Operating on blockchain technology, Sentinel Protocol harnesses collective cyber security intelligence to protect crypto assets against hackers, scams and fraud