With the membership in TRUST, PayPal will comply with the BSA Travel rule.
PayPal, an American multinational financial technology company operating an online payments system, has been added to Coinbase’s Travel Rule Universal Solution Technology (TRUST) network.
According to the press release shared by Coinbase, being a part of this network will allow PayPal to comply with the Bank Secrecy Act (BSA) rule 31 (also known as the Travel rule).
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Based on this rule, financial institutions are required to share specific information about customers when they confirm transactions worth more than $1,000 from one financial institution to another.
Compliance with this rule becomes exceptionally relevant to PayPal. In June, the company expanded its digital asset services. The company enabled customers to send, receive and transfer crypto between PayPal and other exchanges or wallets. The firm launched its crypto services back in October 2020, and until June allowed customers to buy and sell crypto.
When sharing the announcement on its blog post, Coinbase noted:
The addition of PayPal marks another milestone in TRUST’s journey to become the global, industry-standard solution for Travel Rule compliance.
Coinbase’s TRUST network was created by 18 U.S. virtual assets service providers (VASPs) to ensure the safety and transparency of shared sensitive customer information. According to the official TRUST network’s website:
Information is sent directly from one TRUST member to another, through end-to-end encrypted channels. TRUST never centrally stores sensitive customer information where it could be targeted by an attacker or misused by a third party.
Currently, the network has 38 members, including Binance US, Kraken, Gemini, Crypto.com, Robinhood, and many other crypto-related companies.
To join the TRUST network, the companies must meet anti-money laundering and know-your-customer (KYC) requirements under the supervision of Exiger.
This article was originally published in Bitdegree and can be viewed here:
https://www.bitdegree.org/crypto/news/paypal-receives-approval-to-join-coinbases-trust-network
