Travel Rule
A rule requiring crypto service providers to send and receive originator and beneficiary information with transfers.
The Travel Rule requires financial institutions to pass information about the sender and recipient along with a transfer. The Financial Action Task Force (FATF) extended it to virtual asset service providers in 2019, and many countries have written it into law.
In the EU, the Transfer of Funds Regulation (EU) 2023/1113 has applied since 30 December 2024. It covers crypto transfers of any amount between crypto-asset service providers. For transfers above EUR 1,000 to or from a self-hosted address, the provider must also check that the address is owned or controlled by its customer. Turkey's MASAK rules and other national regimes apply similar requirements.
The Travel Rule applies to service providers, not to transfers between two private wallets. Users mostly notice it as extra questions about the destination or origin of a withdrawal or deposit, such as whether the other wallet is their own or belongs to another exchange.
