Paypal joins other crypto powerhouses on the TRUST network
- Paypal joins other crypto powerhouses on the TRUST network.
- TRUST uses a method that consists of two primary features: an encrypted point-to-point (P2P) channel and a central message board.
PayPal has joined the Travel Rule Universal Solution Technology (TRUST) network, joining a number of other well-known crypto companies that have taken action to adhere to the laws governing the movement of digital assets.
Big day for the Travel Rule Universal Solution Technology (TRUST) network as we welcome digital payment leader @PayPal. Our industry-driven solution to balancing Travel Rule compliance with protecting customer privacy & security is now 38 members strong. https://t.co/OybFRjbmwU pic.twitter.com/eKmAYHBoLQ— Circle (@circlepay) August 22, 2022
A group of 18 U.S. virtual asset service providers (VASPs) started TRUST in February, with major players including Coinbase, Paxos, Circle, Kraken, and Robinhood taking part right away. Since Paypal joined the group, the number has increased to 38.
The TRUST network now includes Paypal as another prominent cryptocurrency player
In an announcement on August 23, Coinbase stated that the addition of PayPal marks another milestone in TRUST’s mission to become the global, industry-standard solution for Travel Rule compliance.
U.S. VASPs are legally compelled to share particular information about customer fund transfers from one financial institution to another under Bank Secrecy Act (BSA) rule 31, sometimes known as the “Travel rule.” The starting point for identifying fund transactions and the parties involved is $1,000.
The organization of U.S. VASPs developed TRUST in order to streamline reporting and make information sharing between them simpler and more transparent. In order to identify each VASP party on both ends of a transaction, TRUST uses a method that consists of two primary features: an encrypted point-to-point (P2P) channel and a central message board.
The organization was created in response to the Financial Action Task Force’s (FATF) June 2021 proposal that all VASPs globally embrace certain standards in order to continue adhering to anti-money laundering (AML) and anti-terrorist financing (ATF) regulations.
The move follows the rollout of infrastructure by the payments industry giant in June of this year, which allowed users to send, receive, and transfer digital assets between PayPal and other wallets and exchanges. After the company’s initial entry into the market in October 2020, users could only buy and sell crypto within Paypal.