The Travel Rule Universal Solution Technology (TRUST), backed by Coinbase, focused on developing an anti-money laundering system for crypto transactions, is launching TRUSThub to expand its reach.
TRUST includes some of the largest virtual asset service providers (VASPs) including Baanx, Coinpass, Fidelity Digital Assets Ltd, Gemini Kraken and Revolut.
A VASP is an organization or business that manages the transfer, exchange, safekeeping, or management of virtual assets such as cryptoon behalf of others.
TRUST explains that as the regulatory landscape around virtual assets evolves the demand for information sharing among VASPs is critical.
The group is launching a hub which it claims will be a “creative and efficient way” to navigate obstacles, including the ability to engage with counterparty VASPs who are not yet members of TRUST.
TRUSThub Simplifies Compliance for Crypto Transactions
TRUSThub is set to launch by the end of 2024. The new tool is designed to help VASPs meet Travel Rule compliance requirements. The system allows VASPs to share necessary transaction information, regardless of the tools they already use, while supporting global collaboration.
When a user from a TRUST member sends funds to a non-TRUST VASP, TRUSThub will step in to locate the recipient’s contact details.
It then sends the required compliance data through a protected system. This process will allow transactions to meet legal standards without slowing down or limiting operations for either party.
TRUSThub to Handle Compliance on Large Orders
The group said, one benefit of TRUSThub is its ability to handle compliance without disrupting large numbers of user transactions.
The firms said the system will prioritize privacy by protecting sensitive user information. This allows TRUST members to maintain secure, and compliant operations when working across different networks.
Once TRUSThub is available, it will be easier for TRUST members to navigate the changing rules around virtual asset transactions while continuing to provide services for their users.
Changing Rules Around VASPs
In November 2023, Gemini implemented changes in response to new regulations affecting VASPs in the UK. Gemini announced adjustments to align with the new Travel Rule regulations in the UK.
The changes involved a set of global standards requiring financial institutions and VASPs to share information about senders and recipients of virtual assets. To achieve this, Gemini partnered with TRUST.
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