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Part of the benefits that come with being a Crypto.com user is earning rewards and reducing the costs of travelling. For Crypto.com top-tier card holders (Icy white and Obsidian), there are incentives when you choose to pay for your flight with your Crypto.com card. To increase transparency when dealing with cryptocurrency, travel rules involving crypto agencies have regularly been changed. 

Crypto.com has recently updated its travel rules in compliance with Travel Rule Universal Solution Technology (TRUST). In simple words, this integration is to prevent money laundering using cryptocurrency. So, if you are not doing anything illegal using crypto, you have nothing to fear.

Let’s look at what the updated travel rule says.

What is Trust?

Trust is an agency designed to protect the security and privacy of its users. The agency allows crypto platforms to implement the travel rule across global markets while supporting them to ensure that all requirements are fully adopted. To ensure this, TRUST makes use of top-tier privacy and security measures. 

Crypto.com joins the VerifyVASP Alliance

In line with complying with all the travel rules, crypto.com formed another alliance with VerifyVASP. For virtual asset service providers (VASPs) in Asia, VerifyVASP is a top supplier of Travel Rule solutions. When communicating with other alliance members, VASPs can transfer and receive virtual assets while adhering to the Travel Rule and personal data protection regulations by using VerifyVASP.

The partnership is a critical step in meeting Travel Rule obligations, as Crypto.com continues to support cryptocurrency transfers for its users following the principles set by the Financial Action Task Force (FATF).

All you need to Know about the FATF Travel Rule

The travel rule was first initiated in 2019 by the Financial Action Task Force (FATF). The policy aims to combat money laundering and develop anti-money laundering policies in virtual assets. Also, in the bid to fight money laundering, the policy guides against terrorist financing using crypto worldwide. 

Here are a few facts you should know about the rule:

  1. The travel rule, initially known as the FATF recommendation, compels VASPs to share details on the issuers and recipients of cryptocurrency transactions that are greater than a specific threshold.
  2. Every time a transaction exceeds $1,000, the requirements call for VASPs to provide information about the originator and beneficiary’s identities. In summary, if crypto worth more than $1,000 is exchanged, the crypto service provider of the sender is required to share the recipient’s crypto service provider with personally identifiable information (PII) about the sender.

This regulation’s primary goal is to prevent money laundering and the financing of terrorism. The following are further justifications for the significance of the travel rule:

  • The travel restriction makes sure that cryptocurrency firms follow the law.
  • The process of subpoenaing transaction data is made simpler for law enforcement.
  • As the first worldwide crypto rule, it may pave the way for others that are more standardized.

Although some users have expressed concern since Crypto.com adopted the travel rule, taking a critical look at what the policy set to achieve makes it safe. While crypto.com ensures that the safety of users’ data on its network is a top priority, the platform also aims to maintain a clean slate in its financial dealings.

While many crypto adopters and users are keen to leave the era of the traditional financial institution, it is glaring that we can’t just leave all the pieces behind. The emerging financial institutions must leverage and link with the traditional financial institution to move to the new era.

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