Amid tightening anti-money laundering regulations, crypto-currency companies are launching a platform for the secure exchange of user data.
Cryptocurrency exchange Coinbase announced that 18 cryptocurrency companies, on its initiative, launched the TRUST platform, which is designed to securely transfer user data. The new solution should allow crypto companies to comply with the Financial Action Task Force (FATF) Crypto Travel Rule.
In addition to Coinbase, Anchorage, Avanti, Bitgo, bitFlyer, Bittrex, BlockFi, Circle, Fidelity Digital AssetsSM, Gemini, Kraken, Paxos, Robinhood, Standard Custody & Trust, Symbridge, Tradestation, Zero Hash, and Zodia Custody are participating in the project.
The exchange believes that TRUST will enable it to more effectively comply with the regulator’s rules, while at the same time meeting the expectations of clients regarding the speed and quality of information processing.
The TRUST platform will not use a central store of personal data, but instead intends to send information directly from one TRUST member to another through end-to-end encrypted channels. In addition, TRUST includes a mechanism by which the receiving exchange proves that it is the owner of a particular cryptocurrency address before receiving customer information.
Coinbase reports that the platform is going to expand the list of participants. So far, other major crypto exchanges like Binance and FTX are not participating in the project.
In January, New York law firm Notabene found that 70% of companies are ready to comply with the Travel Rule by mid-2022. Last year, the FATF prepared recommendations for regulating the cryptocurrency industry. Including the Travel Rule principle, which obliges virtual asset service providers (VASPs) to exchange information about participants in transactions with each other. In February last year, the BitMEX cryptocurrency exchange introduced a structure for storing data of senders and recipients of transactions as part of the Travel Rule principle.
Source: Bits
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