Introduction

clearproof generates zero-knowledge proofs that FATF Travel Rule compliance was performed correctly — without transmitting raw PII between counterparties.

Encrypted PII travels alongside the proof in a hybrid payload, satisfying regulatory “transmit” requirements while minimizing data exposure.

Terminology

VASP — Virtual Asset Service Provider. Any business that conducts exchange, transfer, safekeeping, or administration of virtual assets on behalf of customers. This includes cryptocurrency exchanges, custodial wallet providers, and financial institutions offering crypto services. VASPs are the regulated entities that the FATF Travel Rule applies to — they are the ones who must exchange originator and beneficiary information during transfers.

Why this exists

The FATF Travel Rule requires VASPs (Virtual Asset Service Providers) to exchange originator and beneficiary information for transfers above jurisdiction-specific thresholds. Current implementations transmit PII in cleartext between counterparties, creating honeypots.

clearproof replaces cleartext exchange with a hybrid payload:

1. A Groth16 ZK proof (192 bytes) that compliance checks passed
2. AES-256-GCM encrypted PII that only the counterparty can decrypt
3. On-chain verification that the proof is valid and domain-bound

The counterparty receives cryptographic certainty that compliance was performed, plus encrypted PII for their own records — without either party broadcasting sensitive data.

What’s inside

Key design decisions