Several well-known companies working in the crypto economy, such as Coinbase and Robinhood, decided to jointly create a special technology designed to comply with the anti-money laundering rule.
We are talking about the rule according to which crypto platforms are required to provide data about their users if they send finances over the accepted limit to other institutions.
To comply with the above rule, crypto exchanges are developing a special technology — Travel Rule.
Travel Rule
Travel Rule must fully ensure the implementation of the rule. In addition, it will be able to protect customer data at the highest possible level. The technology itself does not store any personal data. All information is transmitted to participants via secure channels using cryptographic encryption methods.
The technology also includes a mechanism by which the crypto exchange can prove that it is the owner of the receiving address before transmitting customer data.
Several dozen cryptocurrency platforms are already testing this technology. Among them are Avanti, BitGo and others.
