# 04-Communicating-With-Other-Protocols



04-Communicating-With-Other-Protocols [#04-communicating-with-other-protocols]

**Prerequisites** [#prerequisites]

**Policy** [#policy]

* Internal policies and processes must be designed separately, taking into account the unique nature of **Binance's Travel Rule operations** (detailed below).
* Most importantly, a policy is required to determine whether to allow **only first-party transfers** (self-transfers) or to permit **third-party transfers** as well.

**Binance Specifics** [#binance-specifics]

* Currently, Binance does not proactively send Travel Rule data.
* For inbound transfers, they do not follow a "requesting originator/beneficiary personal info" model. Instead, they use a **verification model** to confirm if "the provided originator/beneficiary information is correct." This means we must first acquire the counterparty's information and then request Binance to verify its accuracy.
* Generally, only first-party transfers are allowed for automated processing. However, if a policy is established to allow third-party transfers—reflecting the specific nature of **legal entity accounts**—a process must be added to collect counterparty information from the user.
* **ID-Connect** cannot be used for legal entity Travel Rule processes because it does not support the input of corporate (legal entity) information, unlike individual Travel Rule processes.
* When processing inbound transfers, the workflow can initially branch into either **ID-Connect** or the **"Search VASP by TxID"** process, depending on the recipient account type (Individual/Legal Entity).

**Development** [#development]

* Please check the **Entity ID** and **Public Key** of the Binance Global exchange through the **'Query VASP List'** API.
* Requests where the Binance Global Entity ID is the `origin` must be permitted.
* The **'Virtual Asset Address Search'** and **'Asset Transfer Authrization'** APIs require the following additional parameters: `address`, `tag`, and `network`.
* For `network` information, please refer to the **\[Network by Coins]** page.

Withdraw to Binance [#withdraw-to-binance]

<Mermaid
  chart="graph TD
    %% Node Definitions
    step1[&#x22;1. 'Virtual Asset Address Search': BINANCE&#x22;]
    step2[&#x22;2. 'Asset Transfer Authorization'&#x22;]
    step3[&#x22;3. 'Report Transfer Result'&#x22;]

    %% Flow Connections
    step1 --> step2
    step2 --> step3

    %% Styling
    classDef processStep fill:#cfe2e2,stroke:#8fbaba,stroke-width:1px,color:#000,rx:20,ry:20;
    class step1,step2,step3 processStep;

    %% Explanatory Mapping
    %% step1: Inquiry of virtual asset address (associated with Binance).
    %% step2: Request for permission to transfer assets.
    %% step3: Transmission of asset transfer results."
/>

1. **Receive the asset destination address from the user, request a query to Binance, and confirm the 'valid' response.**

* Use the &#x2A;*'Virtual Asset Address Search'** API.
* The `address`, `tag`, and `network` information must be provided as mandatory fields in the request.
* For `network&#x60; details, please refer to the &#x2A;*\[Network by Coins]** page.

2. **Call the 'Asset Transfer Authorization' API and confirm the 'verified' response.**

* Use the &#x2A;*'Asset Transfer Authorization'** API.
* The `address`, `tag`, and `network` information must be provided as mandatory fields in the request.
* For `network&#x60; details, please refer to the &#x2A;*\[Network by Coins]** page.
* For instructions on object creation, please refer to the &#x2A;*\[Create Travel Rule Object]** page.

3. **After completion, send the TxID using the 'Report Transfer Result' API.**

* Use the &#x2A;*'Report Transfer Result'** API.

Deposit from Binance [#deposit-from-binance]

<Mermaid
  chart="graph TD
%% Node Definitions
  step1[&#x22;1. Incoming asset deposit transaction&#x22;]
  step2[&#x22;2. 'Search VASP by Txid': BINANCE&#x22;]
  step3[&#x22;3. Binance specific policy&#x22;]
  step4[&#x22;4. Get KYC/KYB info&#x22;]
  step5[&#x22;5. Verify with 'Asset Transfer Data Request'&#x22;]
  step6[&#x22;6. Confirm 'normal' reponse&#x22;]

%% Flow Connections
  step1 --> step2
  step2 --> step3
  step3 --> step4
  step4 --> step5
  step5 --> step6

%% Styling for visual consistency
  classDef processNode fill:#cfe2e2,stroke:#8fbaba,stroke-width:1px,color:#000,rx:20,ry:20;
  class step1,step2,step3,step4,step5,step6 processNode;

%% Explanatory Mapping
%% step1: Initial stage of asset deposit.
%% step2: Identification of the Virtual Asset Service Provider (VASP) using Transaction ID via Binance.
%% step3: Addressing specific Binance-related transfer policies.
%% step4: Obtaining relevant sender and receiver data.
%% step5: Executing data verification protocols.
%% step6: Final verification of a 'normal' response status."
/>

1. **Assets are deposited without Travel Rule information. Depending on the recipient account type (Individual/Legal Entity), proceed with 'ID-Connect' for individuals or 'Search VASP by TxID' for legal entities.**
2. **Confirm that the originating VASP of the transaction is Binance through the 'Search VASP by TxID' process.**

* Use the &#x2A;*'Search VASP by TxID'** API.
* The `network` information must be provided as a mandatory field in the request.
* For `network&#x60; details, please refer to the &#x2A;*\[Network by Coins]** page.

3. **Determine the policy considering the unique communication method with Binance.**

* Since Binance uses a **verification model** ("Is this originator info correct?") rather than a "Send us the originator info" model, typically only **first-party transfers** are supported for automation.
* Decide whether to support **third-party (other-to-self) transfers*&#x2A;, taking into account the specific nature of &#x2A;*'legal-to-legal'** asset transfers.
* If third-party transfers are supported, a process must be added to request the originator's information (Individual/Legal Entity) from the user who received the Binance withdrawal transaction.

4. **Input the originator and beneficiary information to generate Travel Rule data.**

* **First-party transfer:** Input the recipient account's KYB information into both the `originator` and `beneficiary` fields.
* **Third-party transfer:** Input the recipient account's KYB information into the `beneficiary` field, and input the sender's information (received from the user) into the `originator` field. (Identification of individual or legal entity is required.)

5. **Verify whether the originator information we sent matches Binance's data via the 'Asset Transfer Data Request' API.**
6. **Confirm the 'normal' response and finalize the deposit processing.**