CODE is a proprietary data exchange protocol developed by code, a Korean provider of specialized Travel Rule services for VASPs founded by the leading local virtual asset exchanges, Bethumb, Coinone, and Korbit.

How CODE protocol works

Sumsub utilizes CODE as a bridge that verifies and delivers information about the beneficiary VASP/wallet address and authorizes the transaction via API.

Information exchange through CODE protocol

The information exchange is carried out in the following manner:

For outbound transactions:

1. The sender VASP creates a transaction and sends a request to find the VASP to which the beneficiary's wallet address belongs.
2. If the search is successful, the sender VASP requests to confirm whether the remitter asset address can be reached via CODE. If the wallet search result is invalid, a detailed explanation is sent in response.
3. The sender VASP requests the remitter VASP to authorize the transfer.
4. The remitter VASP checks the sender's information and rejects the transaction or authorizes it.
5. The sender VASP updates the status of the transfer (verified or denied).

For inbound transactions:

1. The sender VASP requests to confirm whether the remitter asset address can be reached via CODE.
2. The required information is sent to Sumsub via CODE and the respective transaction is automatically created and scored using applicable rules.
3. The beneficiary's name is matched against existing client applicants.
4. The sender VASP updates the status of the transfer (verified or denied) and sends it to Sumsub via CODE.