Announced today, the Travel Rule Universal Solution Technology (TRUST) is an industry-embraced solution to comply with the FATF Travel Rule that targeted VASPs (virtual asset service providers) globally.
Announced by founding members who include most of the biggest names in crypto, the Trust platform is designed to securely send crypto transaction information as required by the Travel Rule while safeguarding user information.
The founding members include: Anchorage, Avanti, Bitgo, bitFlyer, Bittrex, BlockFi, Circle, Coinbase, Fidelity Digital Assets, Gemini, Kraken, Paxos, Robinhood, Standard Custody & Trust, Symbridge, Tradestation, Zero Hash, and Zodia Custody.
FATF, or the Financial Action Task Force, is a global group that aims to create requirements within the financial services sector that deters nefarious activities. The Travel Rule was created to require VASP platforms to maintain buyer and seller information to deter bad actors such as money laundering and terrorist financing. Initially, industry participants pushed back on the FATF request but, over time, VASPs have come around to the Travel Rule.
TRUST is designed to comply while being sensitive to user data. The solution is described as providing:
1. No central store of personal data: We never centrally store sensitive customer information where it could be targeted by an attacker or misused by a third-party. The required information is only directly sent from one TRUST member to another, through end-to-end encrypted channels, and the receiver is required to safeguard it.
2. Proof of address ownership: TRUST includes a mechanism for the receiving exchange to prove that it’s the owner of the receiving crypto address before customer information is sent–to ensure that the right information is sent to the right exchange.
3. Core security & privacy standards: We require all TRUST members to meet core anti-money laundering, security and privacy requirements before joining the solution. And we are partnering with Exiger, a global market leader in technology-enabled compliance and risk management solutions, to help us meet that bar, and to provide ongoing compliance support
Obviously, the goal is to establish an industry standard and avoid unnecessary fragmentation that could undermine sector growth. TRUST members anticipate expanding into other global jurisdictions. Coinbase has posted a page for interested firms seeking more information or membership.