Tuesday, December 6, 2022
HomeTechnologyPayPal joins Coinbase's TRUST Network

PayPal joins Coinbase’s TRUST Network

Coinbase released a blog post on its website announcing that PayPal has joined the Travel Rule Universal Solution Technology (TRUST) network.

Coinbase announced that PayPal has joined the network of Travel Rule Universal Solution Technology (TRUST) on Coinbase website via blog post on August 22. The Travel Rule is a regulation that must be more often complied with, and TRUST is a worldwide, industry-driven solution that puts consumer security and privacy first.

The inclusion of PayPal is another accomplishment in TRUST’s quest to establish itself as the world’s leading provider of Travel Rule compliance solutions. PayPal is making the change in an effort to follow the “Travel rule” established by the financial sector.

The Bank Secrecy Act’s Travel Rule requires US financial institutions to comply and is a component of that law. The Travel Rule requires financial institutions to provide details about clients who transfer money beyond a predetermined threshold. In June 2021, the Financial Action Task Force (FATF) released proposals for travel regulations for VASPs (Virtual Asset Service Providers). Currently, the FATF, an intergovernmental agency that oversees anti-money laundering rules, serves the G7 and 30 other wealthy nations.

Companies who join TRUST become a member of a global alliance that is quickly expanding. Since TRUST was established in February of last year, it has grown to include 38 members. Along with Coinbase, TRUST includes other well-known crypto exchanges such as Crypto.com, Binance.US, Gemini, and Kraken. Additionally, many businesses working together in the network include the USDC issuer Circle, the asset management Fidelity Digital, the stock and crypto trading platform Robinhood, and the crypto lender Nexos.

By utilising technology to improve financial services and commerce for more than 400 million customers and businesses worldwide, PayPal has been a pioneer in digital payments for more than 20 years.

Additionally, PayPal started offering crypto trading to its members in October 2020. Beginning in June, it offered new features that allowed users to withdraw and deposit bitcoin. PayPal undoubtedly needs to abide by the laws closely since it now provides a larger range of crypto operations. This means that PayPal’s decision to join Coinbase’s network will probably benefit it.

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Vaishali Goel
Technology enthusiast, explorer and academic scholar. Currently exploring the crypto world. Join me in my journey to see how crypto, NFT and Metaverse will change the world.


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