PayPal joins Coinbase’s TRUST Travel Rule Solution
The payment service PayPal joined the Coinbase TRUST network (Travel Rule Universal Solution Technology), which allows the identification of cryptotransactions when making cross-border payments.
This means that PayPal commits to follow the so-called “travel rule”, which is a recommendation of the Intergovernmental Financial Monitoring Commission (FATF) on the principles of cross-border movement of crypto-assets.
The goal of the regulation: for the sake of anti-money laundering (AML), to make financial flows as transparent as possible for market regulators. In this way, 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 guidelines were then extended to retail investors.
PayPal’s decision was dictated by a growing suite of crypto services, forcing the company to comply with international crypto requirements. In late 2021, Tether announced its intention to use the technology environment of developer Notabene to determine whether it is possible to securely transfer customer identities to other VASP providers.
Tether will test Notabene’s cross-border payment monitoring system for virtual asset service providers (VASPs) to help combat financial crime.