US-based crypto firms join forces for travel rule compliance
Many major crypto companies based in the United States have released a solution for the Financial Action Task Force's Travel Rule.
In a Wednesday blog post, crypto services provider Paxos announced the launch of the Travel Rule Universal Solution Technology, or TRUST, with members including Coinbase, BlockFi, Gemini, Kraken, Robinhood, Circle, and Fidelity Digital Asset Services. The endeavor is aimed at ensuring crypto firms are in compliance with the Travel Rule while also proving ownership of recipients’ crypto addresses, meeting security and privacy requirements, and not centrally storing users’ personal data.
The Financial Action Task Force, or FATF, recommended to participating regulators across the global that virtual asset service providers, or VASPs, adopt certain guidelines related to anti-money laundering (AML) and anti-terrorist financing (ATF). The guidelines, which many refer to as the “Travel Rule”, aims to prevent users of crypto firms and exchanges from using digital assets for illicit purposes by recommending they provide details on both the sender and recipient to their counterparts for certain transactions of $1,000 or more.
“We are focused on adding new members, so that TRUST can provide comprehensive compliance across the crypto industry,” said the announcement. “The Travel Rule’s reach is expanding internationally, and so must our solution. We are not just focused on exchanges licensed in the U.S., but are expanding to many other global jurisdictions this year.”
TRUST moves our industry forward.We're proud to be one of 18 leading U.S. crypto exchanges to participate in TRUST, an industry-led Travel Rule solution.Learn more herehttps://t.co/O48lrQIJrY
Since its introduction in 2019, the Travel Rule has
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