The payment service company, PayPal, is now a member of Coinbase’sCoinbase’s TRUST (Travel Rule Universal Solution Technology) network. The TRUST network aims to ensure the protection of consumers’ privacy and security while adhering to Travel Rule governing the banking industry.
TRUST Network Helps Members To Comply With Travel Rule
Meanwhile, 18 major VASPs, including Robinhood and Kraken, came together to form the TRUST network in February. The recent addition of PayPal has increased the number of members to 38.
According to the Travel Rule, VASPs are to send certain information about users’ fund transfers from one platform to another. However, this only applies to funds more than $1,000.
The TRUST network releases the necessary information while also protecting users’ privacy. Also, the network does not have central storage for user data.
It ensures that members have a proper risk management option. Exiger, a risk management company, provides this service.
Meanwhile, Coinbase is among the most popular crypto exchanges globally. The crypto firm has worked hard to ensure it complies with state regulations while providing crypto services for users.
This news comes after PayPal reported in June that it would allow users to send and receive crypto. Also, PayPal users can send and receive crypto funds from other wallets.
PayPal’s Foray Into The Crypto Sector
PayPal has over 400 million users globally who use its platform to send and receive funds. Its entrance into the crypto space would help to increase the adoption of cryptocurrency by users.
The payment firm first joined the crypto sector in 2020, but users could only buy and sell cryptocurrencies on the platform.
In other news, investors with Coinbase accounts and wallets have sued Coinbase. They alleged the company breached its customer agreement by freezing the accounts of users and transferring assets without their permission.
According to the lawsuit, the platform prevents users from accessing their accounts and assets for a long period. In some cases, these users may never be allowed to access the account.
The crypto market has had serious price swings in the past week. In the last 24 hours, the market has dropped by over 40%.
Unfortunately, these Coinbase users have not been able to buy, sell, or trade their crypto assets resulting in huge financial losses for them.
Meanwhile, the crypto platform, Coinbase, had sought the guidance of the SEC on the classification of securities. Unfortunately, there is no regulation to classify assets as either commodities or securities.