A group of US-based cryptocurrency companies have launched a new platform aimed at helping firms comply with the Travel Rule regulatory requirement.
Travel Rule Universal Solution Technology (TRUST) allows cryptocurrency exchanges to securely send information legally required by the Travel Rule.
The Travel Rule requires financial institutions to share certain basic information about their customers when sending funds over a certain amount to another financial institution. Custodial cryptocurrency exchanges need to adhere to this rule, as well as other financial institutions.
TRUST was designed to help crypto exchanges meet this rule, whilst maintaining the security and privacy of customers.
Its system does not store any sensitive customer information, instead the data is sent from one TRUST member to another through an end-to-end encrypted channel. The platform also operates a proof of address ownership to ensure funds go to the right person.
Finally, all TRUST members need to meet anti-money laundering, security and privacy requirements before joining the solution.
The current members, which are all based in the US, include: Anchorage, Avanti, BitGo, bitFlyer, Bittrex, BlockFi, Circle, Coinbase, Fidelity Digital Assetsˢᵐ, Gemini, Kraken, Paxos, Robinhood, Standard Custody & Trust, Symbridge, TradeStation, Zero Hash and Zodia Custody.
Plans are to expand into other global jurisdictions soon.
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