Digital payments giant PayPal has joined the Coinbase-led Travel Rule Universal Solution Technology (TRUST). This ‘Travel Rule’ compliance is for businesses to build an anti-money laundering (AML) system for cryptocurrency transactions.
PayPal will work to improve compliance with the ‘Travel Rule’, which the Bank Secrecy Act requires of US financial institutions.
“The addition of PayPal marks another milestone in TRUST’s journey to become the global, industry-standard solution for Travel Rule compliance,” the announcement read.
TRUST requires financial institutions to share certain basic information about their customers when transferring funds to another financial institution in excess of a certain amount.
The Travel Rule works by ensuring that no personal data of customers is stored centrally, while using a system of digital signatures between virtual asset service providers (VASPs) to ensure that the correct address is used in bi-lateral data sharing channels.
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TRUST currently has 38 members, including Amber Group, Anchorage Digital, Binance.US, bitFlyer, BitGo, BlockFi, Circle, Coinbase, Crypto.com, Gemini, Kraken, Voyager, Nexo, Paxos, PayPal, Robinhood, and others.