Sunrise Problem:
The “sunrise” problem is the need for a regulated exchange to know whether a transmission of crypto assets out of their exchange are going to an entity that is covered by the Travel Rule. In addition, they must be able to learn the specific requirements of the data which must be transmitted with the transaction to comply with regulations of their exchange and that of where the recipient resides. first problem for centralized crypto exchanges in complying with the Travel Rule is Discovery, which is the need to know the following when a crypto withdrawal is being requested by a user:
Is the owner of the private key to where funds would be sent covered by Travel Rule requirements?
If so, what Travel Rule information must be sent?
And how should Travel Rule data be sent?
The FIO Protocol (https://fioprotocol.io/) is a delegated proof of stake blockchain that acts as a usability layer for the entire blockchain ecosystem. There are more than a dozen wallets and exchanges that have already integrated the FIO Protocol to enhance usability for users.
Among other capabilities, the FIO Protocol provides human readable wallet “names” called FIO Addresses that can be mapped to public addresses of any blockchain by the owner of the corresponding FIO Private Key. FIO Addresses are different from previous “wallet name” attempts in a number of ways. Most pertinent to the Travel Rule Discovery problem is the structure of FIO Addresses:
Process Flow
Sequence Diagram
User_2 on VASP_B is sending funds to User_1 on VASP_A
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