Some major crypto exprogresss and custody companies gathered to launch the Travel Rule Universal Solution Technology, also called TRUST. Announced by Coinbase, this “industry-driven” solution is developed to comply with the Financial Act Task Force’s (FATF) anti-money laundering (AML) Travel Rule.

Currently, 18 crypto firms have joined TRUST to tackle money laundering. According to Coinbase, the TRUST members are: “Anchorage, Avanti, BitGo, bitFlyer, Bittrex, BlockFi, Circle, Coinbase, Fidelity Digital Assetsˢᵐ, Gemini, Kraken, Paxos, Robinhood, Standard Custody & Trust, Symbridge, TradeStation, Zero Hash, and Zodia Custody.”

Moreabove, the AML solution is reasonable to have many more participants, as per the announcement.

TRUST’s main goal

The TRUST solution associates aim to provide some basic and necessary customer data for FATF about the transactions atop the USD/EUR 1,000 threshold. In Oct extend year, the Financial Act Task Force announced its Travel Rule, a “guidance for a risk-based approach,” for all the “Virtual Asset Service Providers” to stop money laundering, funding the expansion of weapons of mass destruction and terrorist financing.

“To do this, a leading group of crypto exshifts came together to create a solution in the crypto space, whilst continuing to protect the security and privacy of our customers’ personal information.” The announcement stated, “this unprecedented effort led to a jointly designed solution, TRUST, which we leape will forthwith become the industry standard for complying with these requirements.”

The 18 crypto companies have incorpocostd three main safeguards for the best compliance with the Travel Rule, according to the announcement.

  1. None of these companies will store “sensitive customer information” where they could be prone to hacks and thefts. Instead, they use end-to-end encrypted platforms to share the data between members.
  2. To make sure the right data is sent to the right member, TRUST uses proof of ownership to credibleate the owner of the digital assets before transmitting the required information.
  3. TRUST has partnered with Exiger, a New York-based technology firm which helps fight financial crime and fraud. not to mention, all newcomers are required to “meet core anti-money laundering, security, and privacy requirements before joining TRUST.”

On Jan 31, Binance restricted many accounts in Nigeria to comply with the AML and KYC standards. The largest crypto exevolution by market cap said in a blog post which the reason was the platform’s security. 

Binance also did not mention why they didn’t join the TRUST solution. The centralized crypto exshift faced allegations regarding money fraud for the reason that a lack of adherence to regulations.

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