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The Travel Rule The Travel Rule is a regulatory requirement for Operators in the EU.More Travel Rule Articles
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What is the Travel Rule?
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).
The intent of the Travel Rule is to retain Sender and Recipient details for every transaction and exchange such information between VASPs when certain threshold for transaction value is reached.
For transactions over a certain threshold (often $1,000 or €1,000, but this depends on local regulations), the following details are typically required:
Sender (customer)Information, including: full name, wallet address, and a physical address, national ID number, or date of birth and place of birth other identifying information. The Travel Rule now forces you to disclose and attach it to the transaction so that it may be examined by any authorized party later in time.
Receiver Information, including: name & wallet address. If you haven’t already implement strict KYC, then the Travel Rule now forces the matter. To comply with the Travel Rule, you must now (at least) collect your Receivers Name.
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Glossary
The Travel Rule introduces some new terms and acronyms. Here’s a quick reference:
Term | Description | Reference |
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VASP | Virtual Asset Service Providers Crypto-currency Exchange, Custodian Wallet , Crypto ATM Operator …. VASP may be regulated and unregulated. | |
CASP | Crypto Asset Service Providers Same as VASP but defined in context of EU regulation. | |
Originator | Your customer, Sender, Payer. | |
Beneficiary | Your customer or 3rd party person, Receiver, Payee. Somebody who is receiving a value from Originator | |
PII | Personally Identifiable Information Information about Originator, Beneficiary and transaction | |
Envelope | Same as PII in context of CAS. | |
Travel Rule Provider | A third-party that enables authorized transfer of TR PIIs(envelopes) between VASPs within its network. | |
Originator VASP | VASP that is sending crypto-asset value on behalf of a customer | |
Beneficiary VASP | VASP that is receiving crypto-asset value on behalf of a customer | |
Hosted wallet | Crypto-currency wallet where the private keys holds VASP. | |
Custodian wallet | Same as Hosted Wallet. | |
Self-hosted wallet | Crypto-currency wallet where the private keys holds the customer/individual. For example customer is operating his own wallet on his computer or phone where the keys are on the device. | |
Unhosted wallet | Same as Self-hosted wallet. |
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The EU Travel Rule (as of CAS version 20241231) currently requires that every BUY order over the value of €1,000 must be sent to your customer via: |
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There is currently no |
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other compliant method to send coin to any other type of wallet!
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What is this?
This feature enables you to comply with your regional Travel Rule legal requirements, and enables compliant transactions for your customers.
Components
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Outgoing Transfers
View the transfer logs.
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Travel Rule Settings
Configure your Travel Rules.
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Travel Rule Providers
Add or adjust a Travel Rule Provider.
You may be your own Travel Rule Provider (“internal”), or you can contract with an external provider.
We will begin adding additional Providers in 2025.
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VASPs
Add or adjust a VASP:
Virtual Asset Service Provider
Example
This example enables immediate self-hosted compliance for your Organization.
Create a Travel Rule Provider: “Internal”, see: Travel Rule Providers
Create a new VASP, see: Travel Rule VASPs
Add a new Setting, see: Travel Rule Settings
Configure your AML/KYC setting to use the new Travel Rule, see: https://generalbytes.atlassian.net/l/cp/U57zcH33
Configure your Terminal(s) to use the proper AML/KYC setting, see: https://generalbytes.atlassian.net/wiki/spaces/ESD/pages/963281004/Terminal+Settings#General-Settings
Any transaction that has been packaged via a Travel Rule can be viewed from the Transaction Log:
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An example Transfer/Envelope:
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