Prominent Virtual payment firm PayPal is the latest addition to the Travel Rule Universal Solution Technology (TRUST) network. The company joined the list of prominent organizations within the cryptocurrency sphere to take steps in compliance with virtual assets travel regulations.
Notably, the latest development manifests a few months after the organization initiated game-changing features. Recall that around June, the payment firm added new features to aid the transfer and exchange of virtual assets within its platform and other wallets. This feature also includes sending and receiving virtual assets from PayPal to cryptocurrency exchanges.
Previously, before the introduction of the feature, PayPal could only aid the buying and selling of cryptocurrency within its outlet. Then, the selling and buying of cryptocurrency on PayPal came into existence after the firm ventured into the cryptocurrency industry in late 2020.
Meanwhile, the TRUST initiative came into existence in February 2022, after 18 digital assets firms collaborated to establish it. The early founders included Coinbase, Paxos, Circle, Robinhood, Kraken, and others. Now, the number has increased to 38 with the latest inclusion of PayPal.
Additionally, Coinbase expressed its excitement while confirming the inclusion of PayPal today via Tweet. The cryptocurrency exchange said the inclusion of PayPal highlights another remarkable stride in TRUST’s adventure to establish itself as an industry-standard solution for Travel Rule compliance. Also, in a separate Tweet, Circle confirmed the development. The firm tweeted that it’s a big day for TRUST following the inclusion of PayPal. Circle disclosed that TRUST’s membership now consist of “38 members strong.”
How the TRUST Initiative Came Into Existence
According to the Bank Secrecy Act (BSA) 31, commonly referred to as the “Travel Rule,” Virtual assets service providers are mandated to exchange details about their customers from one financial institution to another. $1,000 is the benchmark for identifying the transfer of funds and those who initiated it.
Furthermore, the TRUST manifested in a reactive pattern to the suggestion of the Financial Action Task Force (FATF) around the middle of last year. The recommendation is for VAPs all over the world to embrace some policies in a bid to make them comply with anti-laundering and anti-terrorist financing stipulations.
Side Notes About PayPal
Four days ago, PayPal granted equity awards to new staff members under its 2022 inducement Equity Incentive Plan. The development came into reality after the initiative became approved by the firm’s compensation committee of the Board of Directors.