A group of US crypto companies created the TRUST platform, enabling cryptocurrency trading in compliance with international rules
The TRUST platform allows financial institutions to exchange and transfer cryptocurrencies in compliance with The Travel Rule, a law that requires financial institutions to identify those who send and receive digital coins.
Why is it so important?
- Exchanges cooperating with TRUST will be able to legally transfer digital assets to different countries and convert them into real assets.
- Doing so will dismiss the claims made by state and international regulators to cryptocurrency exchanges, allowing them to develop further.
According to the CoinBase blog, such companies as Coinbase, Circle, Anchorage, BitGo, BlockFi, Gemini, Paxos, Kraken, Robinhood, and others became US TRUST members. The platform's principle consists of the exchange of information through end-to-end encryption channels. Thus, by undergoing the KYC procedure once, the companies' clients can freely transfer money abroad without worrying about getting their accounts blocked.
In 2022, TRUST plans to start operating in other countries as well. Primarily in Canada and Western Europe.
Know your customer (KYC)
The user identification procedure is performed by various means such as sending an SMS to a mobile number, photographing the ID card, calling a cell phone, etc. KYC is mandatory for all financial institutions. Recently, state regulators started requiring KYC procedures for users of cryptocurrency exchanges as well.