PayPal Partners With Coinbase to Simplify Crypto Transactions
On August 22, Coinbase announced in a blog that PayPal has joined Coinbase’s Travel Rule Universal Solution Technology (TRUST) Network to comply with the financial industry’s Travel Rule.
According to Coinbase’s blog, the payments giant PayPal is collaborating with Coinbase on regulatory compliance prioritizing the security and privacy of customers.
With the remainder of the TRUST network, PayPal will work on expanding compliance with the so-called Travel Rule required of U.S. banks by the Bank Secrecy Act. This rule needs banks to share data about users when those users make transactions over a specific amount.
Coinbase TRUST network expects to reveal important information while protecting customers’ privacy. It will try not to use a central store of customers’ information and guarantee its individuals are dependable through a compliance and risk management solution from Exiger.
Though the TRUST network had only 18 members in February, it has grown rapidly lately. PayPal’s collaboration with TRUST puts the group’s membership count at 38.
A number of top crypto exchanges, such as Binance.US, Crypto.com, Gemini, and Kraken, are engaged with TRUST alongside Coinbase. Other firms associated with the network include the USDC issuer Circle, the investment manager Fidelity Digital, the stock and crypto trading app Robinhood, and crypto lender Nexo.
PayPal launched cryptocurrency trading in October 2020. This late spring, it broadened those features further, which allows users to withdraw and deposit crypto for the first time in June.
Probably, PayPal’s growing scope of crypto features implies it should comply with guidelines to a greater extent, and its decision to join Coinbase’s network will likely help it in that regard.
CBW - External Analyst