Coinbase is proud to announce the launch of the Journey Rule Common Resolution Know-how (TRUST), an industry-driven answer designed to adjust to a requirement often called the Journey Rule whereas defending the safety and privateness of our prospects. TRUST is a platform that enables cryptocurrency exchanges to securely ship info legally required by the Journey Rule. The answer is known as TRUST as a result of that’s what we search to instill in our prospects once they use our services and products.
The present U.S. TRUST membership contains the next: Anchorage, Avanti, BitGo, bitFlyer, Bittrex, BlockFi, Circle, Coinbase, Constancy Digital Assetsˢᵐ, Gemini, Kraken, Paxos, Robinhood, Commonplace Custody & Belief, Symbridge, TradeStation, Zero Hash, and Zodia Custody. And we’re quickly increasing to different world jurisdictions.
Why is TRUST mandatory?
The Journey Rule requires monetary establishments to share sure fundamental details about their prospects when sending funds over a specific amount to a different monetary establishment. Custodial cryptocurrency exchanges (like different monetary establishments) should 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 house, whereas persevering with to guard the safety and privateness of our prospects’ private info. This unprecedented effort led to a collectively designed answer, TRUST, which we hope will quickly develop into the {industry} normal for complying with these necessities.
What was the purpose in designing the TRUST answer, and the way was it achieved?
The core purpose in designing TRUST was to attain top-tier compliance with the Journey Rule, whereas absolutely honoring prospects’ expectations over how their info is dealt with. To do that, necessary safeguards have been included as a part of the TRUST answer:
- No central retailer of non-public information: We by no means centrally retailer delicate buyer info the place it could possibly be focused by an attacker or misused by a 3rd occasion. The required info is barely instantly despatched from one TRUST member to a different, by way of end-to-end encrypted channels, and the receiver is required to safeguard it.
- Proof of tackle possession: TRUST features a mechanism for the receiving trade to show that it’s the proprietor of the receiving crypto tackle earlier than buyer info is shipped — to make sure the precise info is shipped to the precise trade.
- 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 assist.
Now that TRUST has launched, what are the subsequent steps?
The subsequent step is including new members, in order that TRUST can present complete compliance throughout the crypto {industry}. The Journey Rule’s attain is increasing internationally, and so should the TRUST answer. TRUST is concentrated on increasing to many different jurisdictions this yr.
The launch of TRUST resoundingly demonstrates that top-tier compliance can go hand-in-hand with a core {industry} worth — sturdy safety of buyer privateness and safety.
To study extra about becoming a member of TRUST, click on right here.
