PayPal has joined the Coinbase TRUST (Travel Rule Universal Solution Technology) network, which allows you to identify crypto transactions when making cross-border payments.
This means that PayPal undertakes to follow the so-called “travel rule” (travel rules), which are the recommendations of the Intergovernmental Commission on Financial Monitoring (FATF) on the principles of cross-border movement of crypto assets. The purpose of regulation: for the sake of combating money laundering (AML), to make financial flows as transparent as possible for market regulators. Thus, the FATF intends to prevent money laundering through the interstate exchange of digital assets. The rules were introduced in 2019, initially for exchanges and cryptocurrency wallet operators. The recommendations were then extended to retail investors.
PayPal’s decision is driven by a growing suite of crypto services, forcing the company to comply with international crypto regulations.
At the end of 2021, Tether announced its intention to use Notabene developer technology environment to determine whether it is possible to securely transfer customer identities to other VASPs. Tether will be testing Notabene’s cross-border payment monitoring system for virtual asset service providers (VASPs) to help fight financial crime.
Source: Bits
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