- Paypal has announced that it has joined the TRUST network.
- The announcement comes two months after Paypal rolled out its latest crypto updates.
- Other big players that have joined TRUST are Robinhood, Paxos, and Coinbase.
Paypal, the popular digital payments giant, has recently been added to the Travel Rule Universal Solution Technology, also known as the TRUST network. This means that Paypal now joins the list of other big names in the crypto industry that made the move to comply with digital asset travel rules.
The announcement came about two months after Paypal rolled out new updates allowing its users to transfer, send, and receive digital assets between Paypal and other wallets and exchanges. Before this, users could only buy and sell crypto within Paypal itself.
TRUST was launched in February of this year by a group of 17 US virtual asset service providers. Big names like Robinhood, Paxos, Coinbase, Circle, and Kraken participated in the projects from their very early stages. The current number, after Paypal joined the list, now stands at 38.
According to Coinbase, “the addition of Paypal marks another milestone in TRUST’s journey to become the global, industry standard solution for Travel Rule compliance.”
The Travel Rule, also known as the Bank Secrecy Act (BSA) rule 31, states that virtual asset service providers are legally obligated to pass on certain information related to customer fund transfers from one financial institution to another.
The standard threshold for identifying money transfers and the people or persons behind them starts at $1,000. This is where TRUST saw the opportunity to make the sharing of information between the involved parties easier and more transparent.
Another reason for the emergence of TRUST is that in June 2021, the Financial Action Task Force (FATF) urged virtual asset service providers around the world to adopt specific principles to assure compliance with anti-money laundering (AML) and anti-terrorist financing (ATF).
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