Coinbase has extended the Travel Rule Universal Solution Technology (TRUST) to the United Kingdom, marking another expansion of this industry-driven initiative aimed at enhancing compliance with the Travel Rule requirement, all while emphasising customer security and privacy.
Initially launched in the United States in early 2022, TRUST has expanded its reach to include Canada, Singapore, and Europe. This recent development brings several prominent virtual asset service providers (VASPs) from the UK into the TRUST family, including Baanx, Coinpass, Fidelity Digital UK, Gemini UK, Kraken UK, Paysafe/Skrill, and Revolut. This expansion anticipates forthcoming Travel Rule requirements for VASPs in the UK, further broadening TRUST’s international coalition, which is expected to continue growing over the next year.
At the time of writing, TRUST comprises over 90 entities, including but not limited to Amber Group, Anchorage Digital, Baanx, Bake, Balance, BGE, Binance.US, BitFlyer, BitGet, BitGo, BitMEX, Bittrex Global, Black.com, BlocPal, Bullish, Cboe Digital, CEX.io, Circle, Coinbase, Coincheck, Coinhako, Coinpass Limited, Coinsmart, Copper.co, Crypto.com, Currency.com, Custodia, Digital Treasures Center Pte. Ltd., EXMO, Fidelity Digital Assets, Gemini, Kraken, LTP, Litebit, Luno, Netcoins, Nexo, OKCoin, Paxos, Paysafe/Skrill, PayPal, Phemex, Revolut, Robinhood, sFOX, Shakepay, Standard Custody & Trust, SwissBorg, Suissebase, SolarisBank AG, Triple A, Taurus SA, TradeStation, VirgoCX, Wealthsimple, Zenus Bank, Zero Hash, and Zodia Custody.
What are the main features of TRUST?
TRUST was designed as a global solution for Travel Rule compliance, accommodating variations in Travel Rule requirements across different jurisdictions. It ensures robust safeguards for customer privacy and security, including:
- No centralised storage of personal data: sensitive customer information is never centrally stored, reducing vulnerability to attacks or misuse. Data is directly transmitted from one TRUST member to another via end-to-end encrypted channels, with the receiver responsible for its protection.
- Proof of address ownership: TRUST includes a mechanism allowing the receiving VASP to verify its ownership of the crypto address before customer information is transmitted, ensuring accurate delivery.
- Adherence to core security and privacy standards: all TRUST members are required to meet fundamental anti-money laundering, sanctions, security, and privacy criteria before participating in the solution.
The implementation of the Travel Rule in the cryptocurrency sector aims to improve transparency and accountability in digital asset transactions, aligning regulatory frameworks more closely with traditional finance. Amid recent market turbulence and challenges faced by important crypto exchanges, governments from around the world are taking action to fortify regulations and provide clarity to this evolving industry.
