Payments giant PayPal joined the Coinbase compliance initiative called the Travel Rule Universal Solution Technology (TRUST), launched in February as an industry-driven solution to comply with the requirement, while at the same time protecting the security and privacy of digital assets customers.
TRUST is a platform that allows cryptocurrency exchanges to securely send the information that is legally required by the Travel Rule, according to a blog post on Tuesday (Aug. 23).
Falling under the Financial Action Task Force (FATF), the Travel Rule is the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) compliance obligation that concerns financial institutions in 37 member countries.
TRUST provides its members with a suite of tools and features, such as proof of ownership, and comprehensive compliance with the Travel Rule, so members can prevent any issues with U.S. authorities.
“The addition of PayPal marks another milestone in TRUST’s journey to become the global, industry-standard solution for Travel Rule compliance,” according to the blog post.
PayPal joins 38 other TRUST members from around the world, including: Amber Group, Anchorage Digital, Balance, Binance.US, bitFlyer, BitGo, Bittrex, BlockFi, BlocPal, Cake DeFi, Circle, Coinbase, Coinhako, Coinsmart, Coinsquare, Crypto.com, Custodia, Fidelity Digital Assetsˢᵐ, Gemini, Kraken, Netcoins, Nexo, Paxos, PayPal, Prime Trust, Robinhood, sFOX, Shakepay, Standard Custody & Trust, Symbridge, Tetra Trust, TradeStation, Unbanked, VirgoCX, Voyager, Wealthsimple, Zero Hash and Zodia Custody.
To join TRUST, members must meet certain security and privacy standards, including meeting anti-money laundering and know-your-customer (KYC) requirements, according to the website.
Information is sent directly from one TRUST member to another, through end-to-end encrypted channels. TRUST never centrally stores sensitive customer information where it could be targeted by an attacker or misused by a third party.