Travel Rule Universal Solution Technology (TRUST) network has seen the addition of cryptocurrency-based digital payments company PayPal, which has joined a list of cryptocurrency names that have made the move to follow digital asset travel rules, according to Cointelegraph.
According to Cointelegraph, the announcement comes two months after the platform unveiled an infrastructure to enable users to transfer, send and receive digital assets between PayPal, wallets and exchanges this year. Before that, users only had the option to buy and sell cryptocurrencies within PayPal, after the firm made the transition into that sector.
On the basis of information by Cointelegraph, TRUST was unveiled by a group of 18 United States virtual asset service providers (VASPs) in February, with companies such as Coinbase, Paxos, Circle, Kraken and Robinhood also participating which expanded to 38 with PayPal’s addition. “The addition of PayPal marks another milestone in TRUST’s journey to become the global, industry-standard solution for Travel Rule compliance,” Coinbase said in a statement.
Moreover, Cointelegraph noted that under the Bank Secrecy Act (BSA) rule 31, US VASPs are required to send certain data related to customer fund transfers from one financial body to another. The group of US VASPs unveiled TRUST to streamline reporting and makes information transfer between them in a transparent manner. TRUST aims to make use of a centralised bulletin board to identify each VASP party on both ends of a transaction, and an encrypted point-to-point (P2P) channel to get exchange data. The group was established as a response to the recomendation from Financial Action Transfer Force (FATF) in June, 2021, for global VASPs to adopt specific principles, in order to maintain compliance with anti-money laundering (AML) and counter-terrorist financing (CTF) norms and regulations.
Going by Cointelegraph’s official website, it is an independent digital media resource covering a wide range of news on blockchain, cryptocurrency assets, and emerging financial technology (fintech) trends.
(With insights from Cointelegraph)
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