key takeaways
- Payments giant PayPal has joined Coinbase’s Travel Rule Universal Solutions Technology Network (TRUST).
- As a member of the group, PayPal will be one of 38 companies working on compliance with the rules.
- PayPal added crypto features in 2020 and should probably comply with regulations like other crypto companies.
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PayPal has joined Coinbase’s Trust Network to comply with the travel rules of the financial industry.
Joins the PayPal Trust Network
PayPal is collaborating with Coinbase on regulatory compliance.
According to a statement from Coinbase on August 22, the payments giant has joined Coinbase’s Travel Rule Universal Solution Technology (TRUST) network.
Along with the rest of the Trust Network, PayPal will work on increasing compliance with the so-called travel rule required of US financial institutions by the Bank Secrecy Act. This rule requires financial institutions to share information about customers when those customers transact more than a certain amount.
Coinbase’s Trust Network aims to disclose essential data while protecting user privacy. It will avoid using a central store of user data and ensure that its members are trusted through Exiger’s compliance and risk management solutions.
Although the Trust Network had just 18 members in February, it has grown rapidly in recent months. PayPal’s decision to join TRUST brings the group’s membership count to 38.
Several top crypto exchanges, such as Binance.US, Crypto.com, Gemini, and Kraken, join TRUST along with Coinbase. Other firms involved in the network include USDC issuer Circle, investment manager Fidelity Digital, stock and crypto trading app Robinhood and crypto lender Nexos.
PayPal introduced cryptocurrency trading in October 2020. This summer, it extended those features further, allowing customers to withdraw and deposit crypto for the first time in June.
Presumably, PayPal’s growing range of crypto features means it must comply with regulations more widely, and its decision to join Coinbase’s network may help in that regard.
Disclosure: At the time of writing, the author of this article owns BTC, ETH and other cryptocurrencies.