For the past couple of months, the main priority of the crypto industry is to comply with FATF’s Travel Rule. Short for Financial Action Task Force, compliance with it would pave the road for future incorporation of the technology. In order to do so, popular crypto exchange Coinbase along with 17 other crypto firms jointly launched an effort named TRUST.
TRUST stands for Travel Rule Universal Solution Technology, developed to comply with FATF’s travel rule. TRUST is open to welcoming other crypto firms in the future. But what does ‘Travel Rule’ mean?
Basically, it is a descriptive label for the regulatory guideline, aiming to curb illicit transactions and money laundering. Moreover, the rule mandates that companies have to deal with finances, passing on KYC/AML transmission data regarding their customers’ identities.
Coinbase briefed about this trust in a blog post yesterday, explaining that well-known VASPs along with the crypto exchange have crafted this plan. As of now, TRUST includes 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.
Moreover, detailing the aim of the effort, Coinbase said:
“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.”
TRUST has also partnered with Risk Management Provider Exiger, aiming to expand to other jurisdictions. They’ve highlighted three fundamentals:
- TRUST members never centrally store sensitive customer information.
- It will leverage a mechanism utilizing proof-of-address ownership.
- TRUST members will have core security and privacy standards.