Payments company PayPal has joined Coinbase’s Travel Rules Universal Solution Technology aka TRUST Network to comply with the financial industry’s travel rules. Launched earlier this year, the trust was created by Coinbase to “protect the security and privacy” of its member customers while complying with travel regulations. The latter is a US law under the Bank Secrecy Act that requires financial institutions and companies to share certain information about customers sending money above a threshold — the starting point for identifying fund transactions and parties involved is $1,000 (roughly Rs. 79,800).
of Coinbase Trust network It aims to disclose essential data while protecting user privacy. It will avoid using a central store of user data and ensure its members are trusted through Exiger’s compliance and risk management solutions.
A warm welcome to @PayPal To join the Trust, a global alliance that provides high-level privacy and security protections to consumers in jurisdictions while complying with travel regulations.https://t.co/OgoL3uS3qc
— Coinbase (@coinbase) 22 August 2022
Although Trust Network had only 18 virtual asset service providers (VASPs) in February, it has grown rapidly in recent months. PayPal’s decision to join TRUST brings the group’s membership to 38.
Many top crypto exchanges, such as Binance.US, Crypto.com, Gemini and Kraken, are involved in TRUST along with Coinbase. Other companies involved in the network include USDC issuer Board, investment manager Fidelity Digital, stock and crypto trading app Robinhood, and crypto lender Nexos.
TRUST was established in response to a crackdown by the Intergovernmental Financial Action Task Force (FATF) on VASP compliance with anti-money laundering (AML) and anti-terrorist financing (ATF) policies.
“The addition of PayPal is another milestone in our journey to become the global, industry-standard solution for trust travel compliance,” Coinbase wrote. Its announcement today,
PayPal made cryptocurrency trading available to its customers in 2020 and has since added many features to that functionality, including the ability to withdraw and deposit cryptocurrencies. Given that the payment provider is now offering a wider variety of crypto functions, it’s not surprising that the company is looking to increase its efforts in terms of complying with regulations and industry compliance standards.