The Travel Rule requires financial institutions to share certain basic information about customers when sending funds to another financial institution. Custodial cryptocurrency exchanges (like other financial institutions) have to satisfy this rule, which was written before crypto even existed.
The Travel Rule Universal Solution Technology (TRUST) is an industry-driven solution designed by a leading group of crypto exchanges to comply with the Travel Rule, while protecting the security and privacy of our customers’ personal information. TRUST is a platform that allows cryptocurrency exchanges to securely send information legally required by the Travel Rule.
The solution is named TRUST because that’s what we seek to instill in our customers when they use our products and services. For more information about TRUST, you may refer to this article.
How does this apply to me?
Paxos is legally required to share user information and transaction data for transactions greater than USD $3,000 notional value.
Paxos is legally required to share both user and beneficiary information, and transaction data on all transactions.
What do I need to do?
When initiating a crypto withdrawal in your Paxos account, you may be required to input beneficiary information when adding a new crypto address for your withdrawal.
How do you ensure the security and privacy of my personal information?
- No central store of personal data: We never centrally store sensitive customer information where it could be targeted by an attacker or misused by a third-party. The required information is only directly sent from one TRUST member to another, through end-to-end encrypted channels, and the receiver is required to safeguard it.
- Proof of address ownership: TRUST includes a mechanism for the receiving exchange to prove that it’s the owner of the receiving crypto address before customer information is sent–to confirm that the right information is sent to the right exchange.
- Core security & privacy standards: We require all TRUST members to meet core security and privacy requirements before joining the solution. And we are using Exiger, a global market leader in technology-enabled compliance and risk management solutions, to help us meet that bar, and to provide ongoing support.