Travel Rule FAQ | Crypto.com Help Center (2024)

FAQs

What is the travel rule for crypto com? ›

You must provide the name of the beneficiary party and whether the transfer is going to a private wallet or cryptocurrency exchange account. Other supplementary information is required as well. The information of the beneficiary party will then be assigned to the corresponding digital wallet address.

The Travel Rule for crypto assets states that any crypto transaction that crosses a certain threshold must be accompanied by the personal information of the customer. Additionally, VASPs must sanction screen the counterparty customer, and perform due diligence on the counterparty VASP.

What is a Travel Rule solution? A Travel Rule solution is a platform that automates data transfers required by FATF Recommendation #16. This includes obtaining, holding, and transmitting required originator and beneficiary information in virtual asset transfers.

The crypto Travel Rule is a regulatory requirement that mandates cryptocurrency service providers, such as exchanges, to share transaction information to prevent money laundering and illicit activities.

A Bank Secrecy Act (BSA) rule [31 CFR 103.33(g)]—often called the “Travel” rule—requires all financial institutions to pass on certain information to the next financial institution, in certain funds transmittals involving more than one financial institution.

All Users' deposits are held in cold storage, for security reasons, however, withdrawal requests - for all cryptos - are automated. In most cases, withdrawals are almost instant and normally should take no longer than 2-3 hours to be processed.

The FATF's Travel Rule requires VASPs, along with other financial institutions, to share relevant originator and beneficiary information from virtual asset transactions, with the aim of preventing money laundering, terrorist financing, and other fraud activity.

The Crypto Travel Rule means that: Any crypto transaction surpassing a specific threshold must include the customer's personal information. VASPs must conduct sanction screening on the counterparty customer and undertake due diligence on the counterparty VASP.

The Travel Rule does not apply when both transaction counterparties are unhosted wallets. Sumsub has partnered with leading Blockchain Analytics providers to assist in identifying risks associated with unhosted wallets taking part in a virtual asset transaction and conducting all relevant AML checks.

The Travel Rule requires virtual asset service providers (VASPs) to exchange identifying information about transaction parties during crypto transfers above a certain amount. A Travel Rule messaging protocol allows VASPs to securely exchange this information.

What is the travel rule recommendation? ›

What is the FATF Travel Rule? The FATF Recommendation 16 on Wire Transfers, “Travel Rule,” requires member countries' virtual asset service providers (VASPs), financial institutions, and obliged entities to exchange originator and beneficiary identifying information with counterparties during transmittals above $1,000.

Travel Rule Requirement

For funds transmittals of $3,000 or more, the transmittor's financial institution must include the following information in the transmittal order at the time that a transmittal order is sent to a receiving financial institution ( 31 CFR 1010.410(f)(1)):

What is the Travel Rule? The Travel Rule requires financial institutions to share certain basic information about their customers when sending funds over a certain amount to another financial institution.

This rule requires virtual asset service providers (VASPs) to share identity details and know-your-customer (KYC) data between them. This exchange of information must take place before transacting together. The goal of travel rules is helping to understand where users send and receive cryptocurrencies.

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 was introduced in the Lok Sabha. The bill seeks to create a favorable framework for the creation of digital currency that will be issued by the Reserve Bank Of India (RBI). Enjoy zero crypto deposit fees and industry's best fee rates.

You can sign up to Crypto.com from every U.S. state except New York.

What is the minimum threshold for the Crypto Travel Rule in the European Union? No minimum threshold applies. EU CASPs must comply with Travel Rule obligations for every transaction, regardless of its amount. Unlike transfers of funds, crypto asset transfers are always subject to the same scope of obligations.