[NEWS] SBI VC Trade to introduce "TRUST"; withdrawal to bitFlyer and Coincheck possible

On the 11th, SBI VC Trade, a domestic cryptocurrency (virtual currency) exchange, announced that it plans to introduce a new Travel Rule-compliant solution called "TRUST." This will allow one-stop handling of deposits and withdrawals between domestic cryptocurrency exchanges.

In addition to the solution "Sygna," which has been introduced since June 1st of last year to comply with the Travel Rule, this new solution will be introduced from the 24th of this month.

This will allow users to send and receive cryptocurrency to cryptocurrency exchanges that could not be directly deposited and withdrawn due to differences in the Travel Rule-compliant solutions used by domestic exchanges. Specifically, users will be able to send and receive cryptocurrency to bitFlyer and Coincheck, which have introduced TRUST.

SBI VC Trade will build a system that allows users to send and receive cryptocurrency to and from these two companies, and will create an environment where users can safely move cryptocurrency between domestic cryptocurrency exchanges.

As of now, it has not been decided when users will be able to deposit cryptocurrency to SBI VC Trade from bitFlyer and Coincheck via TRUST. On the other hand, withdrawals from SBI VC Trade via TRUST will be possible to bitFlyer and Coincheck from the implementation date.

What is the Travel Rule?

The Travel Rule is an international rule established for the purpose of anti-money laundering and counter-terrorist financing (AML/CFT). It requires cryptocurrency exchanges that send cryptocurrency at the request of users to notify the recipient cryptocurrency exchange of information about the sender and recipient.

Compliance with the Travel Rule was made mandatory in Japan by the revised Criminal Proceeds Act on June 1 last year, and domestic cryptocurrency exchanges mainly use two types of solutions, Sygna and TRUST, to comply with the Travel Rule.

However, direct deposits and withdrawals cannot be made between cryptocurrency exchanges that use different solutions, so cryptocurrency exchanges that have implemented Sygna have not been able to send or receive cryptocurrency between bitFlyer and Coincheck, which use TRUST. Now, with SBI VC Trade's implementation of TRUST, these barriers will be removed.

In a statement, SBI VC Trade said, "We believe that by introducing both Sygna and TRUST solutions and acting as a one-stop hub for deposits and withdrawals between domestic cryptocurrency exchanges, we will strengthen AML/CFT, improve customer convenience, and ultimately contribute to the development of the cryptocurrency industry."

Regarding the connection to overseas cryptocurrency exchanges through the introduction of TRUST, the company will notify each time a connection test is completed.

Reference: Announcement
Image: Shutterstock

Related articles

Exclusive interview with Tomohiko Kondo, CEO of SBI VC Trade, which aims to become a hub for domestic cryptocurrency

Amended Payment Services Act incorporating stable coins goes into effect, and measures to comply with the travel rule will also be implemented