Travel Rule

What is this?

This feature enables you to comply with your regional Travel Rule legal requirements, and enables compliant transactions for your customers.

The intent of the Travel Rule is to attach both Sender and Recipient details to every transaction.

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 Travel Rule mandates that certain information about the sender and receiver of a transaction must "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).

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 Information, including: name, wallet address, and a physical address, national ID number, or other identifying information. This is your information, you already know it, but the Travel Rule now forces you to attach it to the transaction so that it may be examined by an interested party.

• Receiver Information, including: name & wallet address. If you don’t already implement strict KYC, then the Travel Rule now forces the matter.

Glossary

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

Components

	Outgoing Transfers View the transfer logs.
	Travel Rule Settings Configure your Travel Rules.
	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.
	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”.

2. Create a new VASP.

3. Add a new Setting.

4. Configure your AML/KYC setting to use the new Travel Rule.

5. Configure your Terminal(s) to use the proper AML/KYC setting.

Any transaction that has been packaged via a Travel Rule can view the package/envelope from the Transaction Log:

An example Transfer/Envelope:

More information