...
The Travel Rule is a regulatory requirement designed to prevent money laundering and terrorist financing, particularly in the financial and cryptocurrency industries. It comes from the Financial Action Task Force (FATF) guidelines. FATF is an international organization created to combat money laundering, terrorist financing, and other threats to the integrity of the global financial system.
The goal of the Travel Rule is to prevent companies and institutions to participate in money laundering. Involvement of the institutions and companies may result in money laundering at very large scale.
The Travel Rule mandates that certain information about the sender and receiver of a transaction to "travel" with the transaction itself when money (or value) is transferred between financial institutions or Virtual Asset Service Providers (VASPs) (or Crypto-Asset Service Providers: CASPs).
...