Crypto giants form travel rule compliance platform

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Some of the biggest play­ers in cryp­to — includ­ing Block­Fi, Coin­base and Robin­hood — have joined forces to devel­op tech­nol­o­gy that helps them meet a rule designed to counter mon­ey laundering. 

Rec­om­mend­ed by the Finan­cial Action Task Force and pre­scribed in the US by Fin­CEN, the Trav­el Rule requires finan­cial insti­tu­tions to share cer­tain basic infor­ma­tion about their cus­tomers when send­ing funds over a cer­tain amount to anoth­er FI.

The cryp­to exchanges have devel­oped Trav­el Rule Uni­ver­sal Solu­tion Tech­nol­o­gy (Trust), which they say ensures top-tier com­pli­ance while also pro­tect­ing the secu­ri­ty and com­pli­ance of their cus­tomers’ information.

Trust does not cen­tral­ly store per­son­al data, with the required infor­ma­tion sent from one mem­ber to anoth­er through end-to-end encrypt­ed chan­nels. The sys­tem also includes a mech­a­nism for the receiv­ing exchange to prove that it’s the own­er of the receiv­ing cryp­to address before cus­tomer infor­ma­tion is sent.

In addi­tion, all Trust mem­ber must meet core anti-mon­ey laun­der­ing, secu­ri­ty, and pri­va­cy requirements.

The 18 mem­bers are 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. Oth­er firms are being invit­ed to join.

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