The publicly-listed cryptocurrency firm Coinbase announced the launch of a collaborative effort called TRUST (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.
FATF guidelines continue to remain a concern for crypto firms.
FATF’s Travel Rule has been a top concern for the crypto industry as virtual asset service providers (VASPs) have been told they need to comply with the regulatory policy. As cryptocurrency has gained more popularity, FATF has been releasing guidelines on the Travel Rule, as the intergovernmental organization believes the rule needs to be applied to VASPs. The ‘Travel Rule’ regulatory guideline aims to curb illicit transactions and money laundering. The rule mandates that all companies dealing with finances 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.
TRUST collaborative effort includes VASPs such as Robinhood, Fidelity Digital Assets, and Tradestation.
In a blog post published on Wednesday, Coinbase announced that it had 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 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 noted in the blog.