In June 2022, PayPal added functionality to allow cryptocurrency withdrawal and deposit. With this feature, the leader in online payment must comply with the rules in force on crypto businesses. Aware of this, PayPal is attempting to comply with the “Travel Rule” by joining TRUST. Find out what this rule entails.
PayPal joins TRUST to comply with current standards
According a tweet from Watcher.Guru on August 22, “PayPal has joined Coinbase’s TRUST network“. You should know that there is a rule of the law on bank secrecy aimed at combating money laundering. This is the “Travel Rule” and it involves financial institutions sharing information about their suspicious customers. Users of financial tools become suspicious when they transfer funds over a certain limit.
Last year, the Financial Action Task Force (FATF) released recommendations on the Travel Rule for cryptocurrency businesses. Crypto platforms are required to notify the FATF in the event of a transaction over $1,000. They must communicate to the group the address of the sender, the names and account numbers as well as the identity of the recipient.
That said, the TRUST network (Travel Rule Universal Solution Technology) created by the American exchange Coinbase can help PayPal to comply with the “Travel Rule”. Indeed, this network works to disseminate the required information while preserving the privacy of users. The number of crypto businesses that are members of it is only indicative of its success.
Online payment leader PayPal recently joined the TRUST network to comply with FATF recommendations. Note that the FATF is an intergovernmental organization dealing with anti-money laundering regulations. Additionally, crypto firms Binance, Crypto.com, Gemini, Kraken, Circle (USDC) and Fidelity Digital Assets are part of the TRUST network.
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