![\"Coinbase](\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2022\/02\/shutterstock_113945947.jpg\")
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On Wednesday, the publicly-listed cryptocurrency firm Coinbase announced the launch of a collaborative effort called TRUST, which stands for \u201cTravel Rule Universal Solution Technology.\u201d The plan is described as an \u201cindustry-driven solution\u201d developed to comply with the Financial Action Task Force (FATF) Travel Rule. There are currently 18 crypto firms that have joined TRUST so far, and the collaborative effort is welcoming other companies to join the initiative.<\/strong><\/p>\n For quite some time now, FATF\u2019s Travel Rule has been a top concern within the crypto industry as virtual asset service providers (VASPs) have been told they need to comply with the regulatory policy. As cryptocurrency has grown more popular, FATF has been releasing guidelines on the Travel Rule, as the intergovernmental organization believes the rule needs to be applied to VASPs.<\/p>\n Essentially, the \u2018Travel Rule<\/a>\u2019 is a descriptive label for the regulatory guideline that aims to curb illicit transactions and money laundering. The rule mandates that all companies that deal with finances have to pass on KYC\/AML transmission data concerning their customers\u2019 identities to the next financial institution. The transfer amount tied to FATF\u2019s Travel Rule has a threshold that\u2019s equal to $3,000 or higher.<\/p>\n In a blog post<\/a> published on Wednesday, Coinbase explains that it has crafted a new plan called TRUST<\/a> with a slew of other well known VASPs. \u201cTravel Rule Universal Solution Technology\u201d or the TRUST collaborative effort includes VASPs such as 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.<\/p>\n \u201cThe core goal in designing TRUST was to achieve top-tier compliance with the Travel Rule, while fully honoring customers\u2019 expectations over how their information is handled,\u201d Coinbase detailed. The plan called TRUST follows the 17 crypto firms that launched a similar collaborative effort<\/a> called the Crypto Market Integrity Coalition (CMIC). That specific coalition, launched last week, said it has plans to \u201cpromote public and regulatory confidence in the new asset class.\u201d<\/p>\n The TRUST plan highlighted three fundamentals to the effort\u2019s compliance solution. The first is the TRUST members \u201cnever centrally store sensitive customer information\u201d and secondly TRUST will leverage a mechanism that utilizes \u201cproof of address ownership.\u201d Moreover, TRUST members must have \u201ccore security [and] privacy standards.\u201d The Coinbase blog post adds:<\/p>\n We require all TRUST members to meet core anti-money laundering, security, and privacy requirements before joining the solution. And we are partnering with Exiger, a global market leader in technology-enabled compliance and risk management solutions, to help us meet that bar, and to provide ongoing compliance support.<\/p>\n<\/blockquote>\n Now that the TRUST has been launched, the collaborative initiative will continue to add members and the blog post notes that the Travel Rule\u2019s reach is \u201cexpanding internationally, and so must the TRUST solution.\u201d During the next 12 months, the group plans to expand to \u201cmany other jurisdictions,\u201d according to the Coinbase announcement.<\/p>\n18 VASPs Launch TRUST in Order to Comply With FATF\u2019s Travel Rule<\/h2>\n
TRUST Partners With Global Compliance and Risk Management Provider Exiger, Travel Rule-Focused Plan Aims to Expand to \u2018Many Other Jurisdictions\u2019<\/h2>\n
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