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'Travel Rule Universal Solution Technology' is being launched by Coinbase and 17...

Legal

bitcoinworld.co.in 17 February 2022 04:17, UTC
  
Reading time: ~2 m

Coinbase, a publicly traded cryptocurrency company, announced the debut of TRUST, which stands for “Travel Rule Universal Solution Technology,” on Wednesday. The strategy is touted as a “industry-driven solution” developed to comply with the FATF Travel Rule. TRUST presently has 18 crypto enterprises as members, and the collaborative effort is welcoming new organizations to join the endeavor.

The FATF’s Travel Rule has been a source of anxiety for the crypto sector for some time. That’s, as virtual asset service providers (VASPs) have been advised they must adhere to the regulatory guidelines.

FATF has been issuing guidance on the Travel Regulation as bitcoin has increased in popularity. Also, as the intergovernmental organization feels the rule should be applied to VASPs.

Essentially, the term “Travel Rule” refers to a regulatory rule aimed at preventing illegal activities and money laundering. According to the rule, all businesses that deal with money must transmit KYC/AML transmission data about their clients’ identities to the next financial institution. The transfer amount connected to the FATF’s Travel Rule has a $3,000 or higher barrier.

Coinbase says in a blog post published on Wednesday that it has created a new TRUST plan with a bevy of other well-known VASPs.

VASPs such as Robinhood, Fidelity Digital Assets, Tradestation, Zero Hash, Bittrex, Coinbase, Gemini, Avanti, Circle, Bitflyer, Zodia Custody, Paxos, Anchorage, Symbridge, Bitgo, Kraken, Blockfi, and Standard Custody & Trust are part of the TRUST joint effort.


The members of the newly formed TRUST organization.


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