PayPal has joined the Coinbase-led Travel Rule Universal Solution Technology compliance initiative (TRUST). The solution, launched in 2022, was designed to “protect the security and privacy” of its members’ customers while complying with the Travel Rule.
The latter is a United States law that requires financial institutions and businesses to share certain information about a customer if they send money above a certain amount. Coinbase explained that crypto exchanges and others must follow this rule when the compliance solution is launched.
Paypal is now a TRUST member!
PayPal has joined the Amber Group, Binance.US, bitFlyer, BitGo, Bittrex, BlockFi, BlocPal, Circle, Crypto.com, Robinhood, Tetra Trust, Voyager, Kraken, Gemini, Consmart, Netcoins, Nexo, Paxos, and 38 other members.
In this announcement, cryptocurrency exchange Coinbase stated:
“PayPal has been a digital payments pioneer for over two decades, leveraging technology to make financial services and commerce more convenient, affordable, and secure for over 400 million consumers and merchants worldwide (…). TRUST’s addition of PayPal is yet another step toward becoming the global, industry-standard solution for Travel Rule compliance.”
TRUST members can access various tools and features, including proof of ownership and “comprehensive compliance” with the Travel Rule. As a result, its members can avoid any problems with US authorities.
TRUST member must meet specific security and privacy standards.
According to the official website, TRUST members must meet specific security and privacy standards. Before joining, this included meeting anti-money laundering and know-your-customer (KYC) requirements.
Coinbase and the other participants announced a collaboration with technology compliance firm Exiger to “assist in meeting these requirements.” The following is stated on the solution’s website:
“End-to-end encrypted channels send information directly from one TRUST member to another. As a result, TRUST never stores sensitive customer information in a central location where it could be targeted by an attacker or misused by a third party.”
Coinbase Has Lost the Trust of the Crypto Community?
Coinbase’s compliance solutions and partnerships have been in the spotlight for several months. As Bitcoinist reported in June, there were rumors of an alleged collaboration between the exchange platform and the United States Immigration and Customs Enforcement (ICE).
Rumors circulated that the exchange platforms were selling user data to the government agency. A Coinbase representative denied the rumors, claiming that all data provided to ICE is public.
However, a portion of the crypto community expressed concerns, which have grown past months since the US and international watchdogs have tightened their grip on the crypto industry. Worldwide, governments appear to be pushing for a crypto space in which users must transact in complete transparency, sacrificing their privacy rights.
