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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.

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What is 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 must 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. This may be your information - or your funding Exchange’s 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 customer’s Receivers Name.

Glossary

The Travel Rule introduces some new terms and acronyms. Here’s a quick reference:

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.

1. Create a Travel Rule Provider: “Internal”, see: Travel Rule Providers

2. Create a new VASP, see: Travel Rule VASPs

3. Add a new Setting, see: Travel Rule Settings

4. Configure your AML/KYC setting to use the new Travel Rule, see: https://generalbytes.atlassian.net/l/cp/U57zcH33

5. 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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More information

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History

Historically Travel Rule existed in pre-crypto era for trans-border fund transfers. Due to cryptocurrency’s borderless nature the regulators decided to apply same rules for cyrptocurrency transfers.

CAS has supported Travel Rule since 2019 by facilitating Travel Rule provider Cipher Trace Traveler. After MasterCard acquired CipherTrace in 2021 it came to a decision in 2024 to sunset Cipher Trace Traveler services in 2024.

In fall of 2024 GB added native support for Travel Rule.

In 2024 European Union came with its own very strict application of Travel Rule guidelines which CAS partially supports from fall of 2024 and fully from February 2025.

Attachments