William K⚡Santiago🔑☢️ @William K⚡Santiago🔑☢️ - 3mo
What is the Travel Rule regulation? The Travel Rule, established by the Financial Action Task Force (FATF), is a set of requirements for financial institutions to collect and share information about the originators (senders) and beneficiaries (recipients) of financial transfers. The Transfer of Funds Regulation (TFR) is the EU's counterpart to the FATF's Travel Rule, and is part of the Anti-Money Laundering Package as well as the MiCA Regulation. As of 2025, the Travel Rule will treat crypto-asset transfers, like Bitcoin, similarly to traditional bank transfers, requiring the sharing of sender and receiver information. The stated intention of the Travel Rule is to combat money laundering and terrorist financing. Where does the Travel Rule apply? Currently, the Travel Rule has been adopted by regulators in the EU and the UK. What does this mean? If you’re based in the EU or UK and send bitcoin (or other crypto-assets) from your account at a crypto-asset service provider, certain information such as name, address, and identification details is required to be shared. All licensed EU crypto-asset service providers are required to comply with the Travel Rule. For custodial wallet customers If you’re sending or receiving using external addresses or wallets via the Bitcoin or Lightning Networks, you’ll need to provide information about the source or destination of your funds, whether it’s your personal wallet or someone else’s. For example if you’re sending or receiving bitcoin from a custodial wallet to your cold storage wallet, you may be asked to verify that you are the owner of this custodial wallet. Similarly, if you’re sending or receiving from another crypto-asset service provider, such as a crypto-exchange, you may be asked to confirm which entity this is and whether you are the owner of the account at that entity. For custodial wallets as companies will be required to collect, verify, and securely share originator and beneficiary information with other crypto-asset service providers and regulators.
