Travel rule

How does the travel rule work?

When you send crypto from one crypto-asset service providerCASP (crypto-asset service provider)A company licensed under MiCA to provide crypto-asset services, such as buying, selling, custody or transfers. to another, the sending provider must include information such as:

• the sender's name, wallet addressWallet addressA string of letters and numbers you give out to receive crypto, much like a bank account number., and home address or date and place of birth
• the recipient's name and wallet address

There is no minimum amount. The rule applies to every transfer between providers, large or small. If information is missing, the receiving provider can reject the transfer, send it back, or ask for the information before releasing the crypto.

The rule goes back to the Financial Action Task Force (FATF), which had long required the same for bank transfers and extended it to crypto-assets in 2019.

What about your own wallet?

If you send more than 1,000 euros to a self-custodySelf-custodyHolding the private keys to your crypto in your own wallet, so nobody else controls it but all the responsibility for the keys is yours. wallet, or receive that much from one, the provider must assess whether the wallet really belongs to you or is under your control. That is why a provider may ask you to confirm that a wallet is yours.

The travel rule is part of anti-money launderingAnti-money laundering (AML)Rules and measures meant to stop the financial system, including crypto, from being used for money laundering or terrorist financing..