In June 2022, PayPal added a feature to allow the withdrawal and deposit of cryptocurrencies. With this feature, the leader in online payment must comply with the current rules on crypto companies. Aware of this, PayPal is trying to comply with the “Travel Rule” by joining TRUST. Find out what this rule implies.
PayPal joins TRUST to comply with current standards
Under tweet from Watcher.Guru on August 22nd,” PayPal has joined the Coinbase TRUST network ». You should know that there is a rule in the banking secrecy act aimed at combating money laundering. This is the “Travel Rule” and it implies that financial institutions share information about their suspicious customers. Users of financial tools become suspicious when they transfer funds beyond a certain limit.
Last year, the Financial Action Task Force (FATF) issued recommendations on the Travel Rule for cryptocurrency companies. Crypto platforms are required to inform the FATF in the event of a transaction exceeding $1,000. They must communicate to the group the sender’s address, the names and account numbers as well as the identity of the recipient.
This says, the TRUST network (Travel Rule Universal Solution Technology) created on the initiative of the American exchange Coinbase can help PayPal comply with the “Travel Rule”. Indeed, this network works to disseminate the required information while preserving the privacy of users. The number of crypto companies that are members of it is only indicative of its success.
The leader in online payment PayPal has recently joined the TRUST network to comply with the FATF recommendations. It should be noted that the FATF is an intergovernmental organization dealing with anti-money laundering regulations. In addition, Binance crypto companies, Crypto.com , Gemini, Kraken, Circle (USDC) and Fidelity Digital Assets are part of the TRUST network.
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Behind the generic signature “Editorial CT” are young journalists and authors with special profiles who wish to remain anonymous because they are involved in the ecosystem with certain obligations.