Introducing the Travel Rule Universal Solution Technology (“TRUST”)

Coinbase is proud to announce the launch of the Travel Rule Universal Solution Technology (TRUST), an industry-driven answer designed to adjust to a requirement generally known as the Travel Rule whereas defending the safety and privateness of our clients. TRUST is a platform that permits cryptocurrency exchanges to securely ship data legally required by the Travel Rule. The answer is called TRUST as a result of that’s what we search to instill in our clients once they use our services and products.

The present U.S. TRUST membership consists of the next: Anchorage, Avanti, Bitgo, bitFlyer, Bittrex, BlockFi, Circle, Coinbase, Fidelity Digital Assetsˢᵐ, Gemini, Kraken, Paxos, Robinhood, Standard Custody & Trust, Symbridge, TradeStation, Zero Hash, and Zodia Custody. And we’re quickly increasing to different international jurisdictions.

Why is TRUST obligatory?

The Travel Rule requires monetary establishments to share sure primary details about their clients when sending funds over a certain quantity to a different monetary establishment. Custodial cryptocurrency exchanges (like different monetary establishments) need to fulfill this rule, which was written earlier than crypto even existed. To do that, a number one group of crypto exchanges got here collectively to create an answer within the crypto area, whereas persevering with to guard the safety and privateness of our clients’ private data. This unprecedented effort led to a collectively designed answer, TRUST, which we hope will quickly change into the {industry} customary for complying with these necessities.

What was the objective in designing the TRUST answer, and the way was it achieved?

The core objective in designing TRUST was to attain top-tier compliance with the Travel Rule, whereas totally honoring clients’ expectations over how their data is dealt with. To do that, essential safeguards had been integrated as a part of the TRUST answer:

1. No central retailer of non-public knowledge: We by no means centrally retailer delicate buyer data the place it may very well be focused by an attacker or misused by a 3rd celebration. The required data is just straight despatched from one TRUST member to a different, by means of end-to-end encrypted channels, and the receiver is required to safeguard it.
2. Proof of handle possession: TRUST features a mechanism for the receiving change to show that it’s the proprietor of the receiving crypto handle earlier than buyer data is shipped — to make sure the fitting data is shipped to the fitting change.
3. Core safety & privateness requirements: We require all TRUST members to satisfy core anti-money laundering, safety, and privateness necessities earlier than becoming a member of the answer. And we’re partnering with Exiger, a world market chief in technology-enabled compliance and danger administration options, to assist us meet that bar, and to supply ongoing compliance help.

Now that TRUST has launched, what are the following steps?

The subsequent step is including new members, in order that TRUST can present complete compliance throughout the crypto {industry}. The Travel Rule’s attain is increasing internationally, and so should the TRUST answer. TRUST is targeted on increasing to many different jurisdictions this 12 months.

The launch of TRUST resoundingly demonstrates that top-tier compliance can go hand-in-hand with a core {industry} worth — strong safety of buyer privateness and safety.

To be taught extra about becoming a member of TRUST, click here.

Introducing the Travel Rule Universal Solution Technology (“TRUST”) was initially printed in The Coinbase Blog on Medium, the place individuals are persevering with the dialog by highlighting and responding to this story.