VASP Discovery

Process type: Withdrawal address screening. Applies to: Requests to add a new withdrawal (destination) address

Purpose

VASP Discovery is the process used to identify where a withdrawal address leads — to a regulated exchange or VASP (the beneficiary side), or to a self-hosted wallet — before the address can be used. This determines whether Travel Rule requirements apply through Blockpass Envoy, whether additional verification is needed via Blockpass's address screening service, and whether the address can be approved.

When this applies

• An end customer (the originator) submits a request to their VASP (the originator VASP) to add a new withdrawal address — the destination they intend to send funds to.

Process

1. Address submitted The originator provides the destination address to the originator VASP. The address is added as a pending entry while it is reviewed.
   
    
2. Address screening The originator VASP checks the address to determine:
   
    
   • Which exchange or VASP (the beneficiary VASP) it is associated with, if any
   • Its risk rating
   • Whether it shows no association with a known VASP
3. Destination classification
   
    
   • Identified beneficiary VASP/exchange — The address is treated as a VASP-to-VASP withdrawal. Travel Rule requirements apply where relevant, with the identified party acting as the beneficiary VASP. 
   • No VASP identified — The address is treated as belonging to a self-hosted (non-custodial) wallet. This typically requires the originator to provide proof of ownership or control of that wallet.
   • High risk — Regardless of the classification above, the address will not be approved.
4. Outcome
   
    
   • Approved — The address is cleared for withdrawals, with the relevant Travel Rule or self-hosted wallet requirements applied to future transactions from the originator.
   • Not approved — The address has been flagged as high risk. It cannot be added to the originator's account, and the request is reviewed further.

Notes

• The classification of the destination (beneficiary VASP vs. self-hosted wallet) determines which requirement applies — Travel Rule information exchange with the beneficiary VASP, or self-hosted wallet verification from the originator.
• An address not matching a known exchange does not mean it is low risk; it means it is treated as a self-hosted wallet, and the relevant verification still applies.
• An address associated with a known beneficiary VASP can still be declined if it is flagged as high risk.