PayPal Joins Coinbase's TRUST Travel Rule Solution
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PayPal will endeavor to improve adherence to the so-called Travel Rule, which the Bank Secrecy Act mandates of U.S. financial institutions and the rest of the TRUST network. When consumers make transactions totaling more than a specific amount, this regulation mandates that financial institutions communicate information about such customers.
TRUST Travel Rule Solution
The TRUST network from Coinbase seeks to release the required information while maintaining user privacy. By adopting a compliance and risk management solution from Exiger, it will avoid using a central repository for user data and guarantee the reliability of its members. Despite only having 18 members in February, the TRUST network has grown recently. With PayPal's decision to join TRUST, the organization has 38 members.
Alongside Coinbase, several prominent cryptocurrency exchanges, including Binance.US, Crypto.com, Gemini, and Kraken, are a part of TRUST. The USDC issuer Circle, asset manager Fidelity Digital, cryptocurrency trading software Robinhood, and Nexos are different companies collaborating in the network.
PayPal Cryptocurrency Trading
In October 2020, PayPal made cryptocurrency trading available. This summer, it added additional functionality, starting in June, allowing users to withdraw and deposit cryptocurrency. Since PayPal now offers a more comprehensive variety of crypto functions, it probably needs to adhere to rules strictly. PayPal's move to join Coinbase's network will probably help it in this regard.