Coinbase’s press release stated, “PayPal has been a leader in digital payments for more than 20 years by leveraging technology to make financial services and commerce more convenient, affordable, and secure for more than 400 million consumers and merchants around the world. The addition of PayPal marks another milestone in TRUST’s journey to become the global, industry-standard solution for Travel Rule compliance”.
Payment processing giant, PayPal, is joining a Coinbase-led compliance solution called Travel Rule Universal Solution Technology (TRUST). This initiative was launched earlier this year and aims to protect the security and privacy of its members' customers with the Travel Rule.
The Travel Rule is a US law requiring financial institutions or companies to share information about their customers when sending money above a certain amount. Coinbase explained that all crypto exchanges must adhere to this rule.
The leading digital payment company is finally joining 38 other companies, including the Amber Group, Anchorage Digital, Binance.US, bitFlyer, BitGo, Bittrex, BlockFi, BlocPal, Circle, Crypto.com, Robinhood, Tetra Trust, Voyager, Kraken, Gemini, Consmart, Netcoins, Nexo, and Paxos.
The cryptocurrency exchange said,
“PayPal has been a leader in digital payments for more than 20 years by leveraging technology to make financial services and commerce more convenient, affordable, and secure for more than 400 million consumers and merchants around the world. The addition of PayPal marks another milestone in TRUST’s journey to become the global, industry-standard solution for Travel Rule compliance”.
TRUST will provide its members with a collection of tools and features, including proof of ownership and comprehensive compliance with the travel rule. This will enable its members to be immune to any case with US authorities.
Concerning the solution, Coinbase stated,
“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”.
Coinbase states that members must meet certain security and privacy standards to be included in TRUST. Some of the requirements include meeting up with the anti-money laundering and know-your-customer (KYC) standards. They partnered with Exiger, a technology compliance company, to help meet these requirements.
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