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BitMEX joins the TRUST protocol to improve its Travel Rule compliance

Thursday 13 April 2023 08:44 CET | News

Seychelles-based crypto derivatives exchange BitMEX has joined the TRUST protocol to improve its Travel Rule compliance capabilities.

 

The Travel Rule Universal Solution Technology (TRUST) is a Travel Rule compliance solution that was created by a group of US-based virtual asset service providers to help companies comply with the US Travel Rule. 

The Travel Rule mandates that virtual asset service providers (VASPs) need to collect and exchange identifying information on the originator and beneficiary when conducting transactions with other obliged financial entities. As the rule is being implemented on a wider scale around the globe, it’s becoming increasingly important for VASPs to be able to exchange required data with each other safely and securely.  

The TRUST protocol supports this process across global markets while protecting the security and privacy of its members. TRUST includes three main safeguards, namely proof of address ownership, core security and privacy standards, and no central storage of personal data. The protocol never stores sensitive customer information centrally, and information is only sent via end-to-end encrypted channels. Moreover, all TRUST members are obligated to meet core requirements related to anti-money laundering, sanctions, security, and privacy. 

In the company press release, BitMEX officials talked about joining TRUST and how it can help the company to maintain compliance internationally whilst demonstrating its commitment to the protection of customer privacy and security. Joining TRUST represents BitMEX’s latest efforts to expand its travel rule compliance capabilities in addition to its existing implementation of VerifyVASP and Notabeneʼs sunrise plan.

 

Seychelles-based crypto derivatives exchange BitMEX has joined the TRUST protocol to improve its Travel Rule compliance capabilities.

 

BitMEX’s ban on Russian users

In July 2022, BitMEX has revealed its intentions to increase compliance with the European sanctions against Russia by preparing to enforce significant restrictions for its Russian users. BitMEX is changing its restricted jurisdictions policy to be compliant with various restrictive measures of the European Union. The crypto exchange notified a group of potentially affected users about the upcoming changes via email. 

As part of the restrictions, Russian users lost their ability to access BitMEX services from the European Union after 11 July 2022. The new restrictions did not apply to Russian citizens or residents accessing BitMEX services from the EU who are also residents in the EU or Switzerland. Dual citizens of the EU or Switzerland who reside outside Russia were also not affected by these changes. 

The measure was aimed at all types of traders, including individuals trading on behalf of any legal persons, while they accessed BitMEX from the EU, as well as legal persons established in Russia, whose traders accessed the services from the EU.


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Keywords: compliance, regulation, trust, cryptocurrency
Categories: DeFi & Crypto & Web3
Companies: BitMEX
Countries: Seychelles
This article is part of category

DeFi & Crypto & Web3

BitMEX

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