Fun

Coinbase and 17 Other Crypto Firms Launch ‘Travel Rule Universal Solution Technology’

News Feed - 2022-02-17 04:02:51

Coinbase and 17 Other Crypto Firms Launch "Travel Rule Universal Solution Technology"


On Wednesday, the publicly-listed cryptocurrency firm Coinbase announced the launch of a collaborative effort called TRUST, which stands for “Travel Rule Universal Solution Technology.” The plan is described as an “industry-driven solution” developed to comply with the Financial Action Task Force (FATF) Travel Rule. There are currently 18 crypto firms that have joined TRUST so far, and the collaborative effort is welcoming other companies to join the initiative. 18 VASPs Launch TRUST in Order to Comply With FATF’s Travel Rule


For quite some time now, FATF’s Travel Rule has been a top concern within the crypto industry as virtual asset service providers (VASPs) have been told they need to comply with the regulatory policy. As cryptocurrency has grown more popular, FATF has been releasing guidelines on the Travel Rule, as the intergovernmental organization believes the rule needs to be applied to VASPs.


Essentially, the ‘Travel Rule’ is a descriptive label for the regulatory guideline that aims to curb illicit transactions and money laundering. The rule mandates that all companies that deal with finances have to pass on KYC/AML transmission data concerning their customers’ identities to the next financial institution. The transfer amount tied to FATF’s Travel Rule has a threshold that’s equal to $3,000 or higher.


In a blog post published on Wednesday, Coinbase explains that it has crafted a new plan called TRUST with a slew of other well known VASPs. “Travel Rule Universal Solution Technology” or the TRUST collaborative effort includes 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. The members of the newly formed TRUST organization.


“The core goal in designing TRUST was to achieve top-tier compliance with the Travel Rule, while fully honoring customers’ expectations over how their information is handled,” Coinbase detailed. The plan called TRUST follows the 17 crypto firms that launched a similar collaborative effort called the Crypto Market Integrity Coalition (CMIC). That specific coalition, launched last week, said it has plans to “promote public and regulatory confidence in the new asset class.” TRUST Partners With Global Compliance and Risk Management Provider Exiger, Travel Rule-Focused Plan Aims to Expand to ‘Many Other Jurisdictions’


The TRUST plan highlighted three fundamentals to the effort’s compliance solution. The first is the TRUST members “never centrally store sensitive customer information” and secondly TRUST will leverage a mechanism that utilizes “proof of address ownership.” Moreover, TRUST members must have “core security [and] privacy standards.” The Coinbase blog post adds: We require all TRUST members to meet core anti-money laundering, security, and privacy requirements before joining the solution. And we are partnering with Exiger, a global market leader in technology-enabled compliance and risk management solutions, to help us meet that bar, and to provide ongoing compliance support.


Now that the TRUST has been launched, the collaborative initiative will continue to add members and the blog post notes that the Travel Rule’s reach is “expanding internationally, and so must the TRUST solution.” During the next 12 months, the group plans to expand to “many other jurisdictions,” according to the Coinbase announcement. Tags in this story Anchorage, Avanti, bitFlyer, BitGo, Bittrex, Blockfi, Circle, CMIC, Coinbase, Compliance, Crypto regulation, Exiger, fatf, Fidelity Digital Assets, Gemini, Kraken, Paxos, Regulations, Regulatory Compliance, Robinhood, Standard Custody & Trust, Symbridge, Tradestation, Travel Rule, trust, TRUST members, TRUST solution, Zero Hash, Zodia Custody


What do you think about the recently formed TRUST and the organization’s Travel Rule goals? Let us know what you think about this subject in the comments section below. Jamie Redman


Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today. JPMorgan: Global Regulation Urgently Needed for Banks to Help Clients Invest in Crypto REGULATION | 7 hours ago SEC Scrutinizing Crypto Exchange Binance US — Chair Gensler Stresses "Basic Investor Protection" REGULATION | 15 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleLBank Exchange Will List Marhaba Network (MRHB) on February 17, 2022 Next articleAscendEX Lists Synchrony, SCY Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItStudents Mining Crypto in Dorms May Face Criminal Prosecution in Russia, Lawyer Says


University students in Russia minting digital currencies in their dormitories risk penalties and even criminal charges, according to a legal expert quoted by local media. The warning comes as Russian authorities are trying to curb crypto mining with cheap energy ... read more.Binance Invests $200 Million Into the Business Magazine and Digital Publisher Forbes JPMorgan Predicts Long-Term Bitcoin Price of $150K — Outlines Challenges Ahead Fitch Ratings Downgrades El Salvador Deeper Into Junk Status Citing Bitcoin Risks US Inflation Jumps to 7.5%, CPI Climbs at Fastest Rate in 40 Years, Citizens See Little Wage Growth

News Feed

Cardano Successfully Applies Alonzo Hard Fork; Adds Smart Contract Capabilities to Its Blockchain
Cardano Successfully Applies Alonzo Hard Fork; Adds Smart Contract Capabilities to Its Blockchain Cardano, the third cryptocurrency ranked by market cap, has successfully applied t
Tether reports record-breaking $5.2B profit in first half of 2024
Alex O’Donnell7 hours agoTether reports record-breaking $5.2B profit in first half of 2024Tether said its US Treasury reserve surpasses the size of all but 17 of the world’s governments.2011 Total views1 Total shares
Trump Media Makes Moves On Bitcoin And Smartphone – What’s Next?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Bitcoin Holds Strong Despite Israel-Iran Tensions – Weekly Resistance Begins To Crack
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Bitcoin Skeptic Peter Schiff Will Sell Troubled Euro Pacific Bank for BTC if Regulators Let Him
Bitcoin Skeptic Peter Schiff Will Sell Troubled Euro Pacific Bank for BTC if Regulators Let Him Peter Schiff says he will sell his bank, Euro Pacific, for bitcoin if the Puerto Ric
Pancake Bunny hacker siphons $2.9M of Ether through Tornado Cash
Arijit Sarkar13 hours agoPancake Bunny hacker siphons $2.9M of Ether through Tornado CashThree years after the Pancake Bunny flash loan attack, the hacker moved $3 million in ETH through Tornado Cash.4379 Total views4 To
Binance Says Indian Crypto Exchange Wazirx Can No Longer Use Its Wallet Services
Binance Says Indian Crypto Exchange Wazirx Can No Longer Use Its Wallet Services Binance has announced that Indian crypto exchange Wazirx can no longer use Binance wallet services.
NFT Collection Veefriends Physical Collectibles to Debut at Macy’s and Toys’R’Us
NFT Collection Veefriends Physical Collectibles to Debut at Macy"s and Toys"R"Us In recent times, non-fungible tokens (NFTs) and their physical counterparts have started to debut a
Blockaid says it caused crypto drainer to shut down, defends against claims of 'false positives'
Christopher Roark5 hours agoBlockaid says it caused crypto drainer to shut down, defends against claims of "false positives"The team defended itself against claims of excessive false positives, suggesting it was so effec
Tom Mitchelhill3 hours agoSam Altman’s Worldcoin passes 2M sign-ups after months of touringWorldcoin surpassed two million sign-ups to World ID in less than half the time it took to reach one million.1220 Total views4
Rock Legend Gene Simmons Is Holding Crypto Despite Market Sell-Offs and FTX Collapse
Rock Legend Gene Simmons Is Holding Crypto Despite Market Sell-Offs and FTX Collapse Rock band Kiss’ lead singer Gene Simmons has confirmed that he is still holding crypto de
Crypto is ‘top of mind for voters’ in US swing states — Harris Poll
Turner Wright7 hours agoCrypto is ‘top of mind for voters’ in US swing states — Harris PollA majority of respondents with crypto-positive views said they intended to vote in 2024, where tight elections in certain s