The giant of digital payments, PayPal has joined the Travel Rule Universal Solution Technology (TRUST) network, joining a number of big names in cryptocurrencies that have moved to comply with digital asset travel rules..
The announcement comes two months after the payment giant launched an infrastructure that allows users to transfer, send and receive digital assets between PayPal and other wallets and exchanges in June this year.. Before that, users could only buy and sell crypto within PayPal, following the firm’s initial jump into the industry in October 2020.
Now you can easily use your crypto with PayPal. Bring it into PayPal and send some to friends and family—all in one place. https://t.co/k24TVHoSYh pic.twitter.com/v0CeV9dNXa
— PayPal (@PayPal) August 15, 2022
Now you can easily use your cryptocurrencies with PayPal. Take it to PayPal and send something to your friends and family, all in one place. https://t.co/k24TVHoSYh pic.twitter.com/v0CeV9dNXa
TRUST was launched by a group of 18 U.S. Virtual Asset Service Providers (VASPs) in February, with heavyweights like Coinbase, Paxos, Circle, Kraken, and Robinhood participating early on. The number has expanded to 38 now that PayPal has joined the ranks.
“The addition of PayPal marks another milestone on TRUST’s journey to become the global, industry-standard solution for Travel Law compliance,” Coinbase noted. in a statement on Tuesday.
Under Rule 31 of the Bank Secrecy Act (BSA), better known as the Travel Rule, U.S. value-added service providers are legally required to transmit specific information regarding customer funds transfers from one financial institution to another. The threshold for identifying fund transfers, and the people behind them, starts at $1,000.
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
It’s a big day for the Travel Rule Universal Solution Technology (TRUST) network as we welcome the leader in digital payments @PayPal. Our industry-driven solution for balancing travel compliance with protecting customer privacy and security now has 38 members. https://t.co/OybFRjbmwU pic.twitter.com/eKmAYHBoLQ
Thus, the group of US payment service providers launched TRUST to streamline reporting and make sharing information between them easier and more transparent. TRUST uses a solution that is made up of two main features; a centralized bulletin board to identify each VASP party at both ends of a transaction; and an encrypted peer-to-peer (P2P) channel to securely exchange data.
The group was formed in response to a recommendation from the Financial Action Task Force (FATF) in June 2021 that VASPs around the world adopt specific principles in order to maintain compliance with anti-money laundering (AML) policies. ) and the financing of terrorism (CTF).
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