Monday Breaking News: Crypto Firms Launch “TRUST” Initiative
The main players within the crypto industry have come together to form a new initiative focusing on combating money laundering and setting regulatory standards.
This initiative is named Travel Rule Universal Solution Technology, also known as TRUST. It is an “industry-driven solution designed to comply with a requirement known as the Travel Rule while protecting the security and privacy of our customers,” announced by a blog post from Coinbase.
Other than Coinbase, the other firms participating in this initiative include: Anchorage, Avanti, Bitgo, bitFlyer, Bittrex, BlockFi, Circle, Fidelity Digital Assets, Gemini, Kraken, Paxos, Robinhood, Standard Custody & Trust, Symbridge, Tradestation, Zero Hash, and Zodia Custody.
The initiative helps participating firms to comply to the Travel Rule, which is a part of Bank Secrecy Act. It requires all financial institutions to pass on certain information to the next financial institutions in fund transmittances and transactions.
Though Coinbase did not go into detail regarding the specific technicalities of the initiative, it is supposedly an “innovative compliance solution” that preserves “the integrity of private customer data,” said Christine Brown, the COO of Robinhood.
The initiative will partner with Exiger, a New York-based company specializing in financial technology, security, risk management, and regulatory compliance.
As of now, TRUST will only be relevant in the U.S. However, there are plans to expand the initiative to markets outside of the States, particularly in Singapore, Germany, and Canada.
This should come as a positive news for crypto investors, since from the very beginning of the inception of cryptocurrencies and trading of crypto coins there has been significant privacy and compliance concerns, and is one of the reasons why governments have been wary or speculative on permitting crypto exchanges to operate at full force. It is believed that with TRUST, crypto firms will be able to better comply with current regulatory standards in place, and seek to expand their operations from here on out.