- PayPal joins the TRUST network group.
- It is to streamline its regulatory compliance regarding the digital assets travel rules.
- TRUST was launched by VASPs in February 2022 to streamline data sharing and comply with regulations.
Payments giant PayPal has joined the TRUST network to step up its regulatory compliance. With this, PayPal has joined the big names in the crypto industry that comply with digital assets travel rules.
Recently PayPal has redefined its infrastructure to allow users to send, receive and transfer digital assets from PayPal to other wallets and exchanges.
Circle in its official tweet said,
Big day for the Travel Rule Universal Solution Technology (TRUST) network as we welcome digital payment leader @PayPal.
TRUST stands for Travel Rule Universal Solution Technology. It was founded by 18 United States virtual asset service providers (VASPs) in February 2022. Some of the VASPs include Coinbase, Circle, Paxos, Kraken, and Robinhood. With the latest addition of PayPal the members have gone up to 38.
Under the Travel BSA rule 31, it is legally mandatory to provide specific information relating to the transfer of funds or digital assets from one institution to another. To streamline the reporting and sharing of information between crypto institutions smoothly and transparently, VASPs launched TRUST.
TRUST envisions a solution that includes a centralized bulletin board to verify each VASP and an encrypted P2P channel to exchange data securely. Its main goal is to outline specific guidelines to comply with the Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) policies.