Expanding globally, many Virtual Asset Service Providers (VASPs) operate through region-specific entities. In these cases, Umbrella VASP support is crucial for Travel Rule compliance — it links all subsidiaries under a single parent VASP, streamlining the process of managing transactions.

For example, Good Exchange Turkey and Good Exchange EU may be linked under the main Good Exchange VASP. Even if an originator (end user) is unable to identify a specific entity, the transaction will be routed correctly to the appropriate VASP within the parent-subsidiary system.

How Umbrella VASP support works

The Umbrella VASP functionality enables the connection of multiple entities under a single VASP, simplifying transaction management. The general performance of the parent-subsidiary system includes the following:

1. All VASP entities are linked to the main VASP.
2. The originator VASP and originator identify the main VASP when performing a transaction.
3. The main VASP routes Travel Rule data and transactions to the appropriate affiliate.

Therefore, originators only need to identify the main VASP (Good Exchange, as in our example). The Travel Rule information is sent to the parent VASP, which then directs the data and transaction to the correct entity (Good Exchange EU or Good Exchange Turkey).

Create Umbrella VASP

The VASPs are only linked by the Sumsub team. To create an Umbrella VASP for your entities, contact your customer success manager.

Deposits: inbound Travel Rule data transfer logic

Inbound Travel Rule data transfer (deposit) behavior varies depending on whether a VASP is integrated within the Umbrella VASP structure.

If a VASP is linked under the Umbrella VASP structure, the process works as follows:

1. The counterparty sends the Travel Rule data to the main VASP and it will automatically redirect the information to all affiliated VASPs for the wallet ownership confirmation.
2. The affiliated VASP that confirms ownership first will then proceed with the data-sharing step.

If a VASP wants to receive inbound Travel Rule data transfers without the redirection logic, it is necessary to upload the wallet addresses belonging to the VASP’s users to the Wallet Address Book.