Travel rule

How it is used

It comes from FATF standards, which applied the wire-transfer rule (Recommendation 16) to crypto service providers in 2019. In the EU, the Transfer of Funds Regulation has applied it since 30 December 2024, with no minimum amount. The name comes from an older US banking rule: customer information must travel with the money.

Example sentences

1. Because of the travel rule, we need the recipient's full name before we can send your withdrawal to another exchange.

2. Our compliance team is testing a new tool for sharing travel rule data with other exchanges.

Common collocations

• comply with the travel rule
• travel rule data
• travel rule solution
• travel rule requirements

Related terms

• AMLShort for anti-money laundering: the laws and controls that stop criminals from hiding the origin of illegal money by moving it through financial systems, including crypto.
• KYCShort for know your customer: the checks a regulated company carries out to confirm who its customers are, usually by collecting an ID document, a selfie and an address.
• MiCAShort for Markets in Crypto-Assets, the EU regulation that sets common rules for issuing crypto assets and stablecoins and for crypto service providers, including their licensing.
• centralized exchangeA crypto exchange run by a company that holds customers' funds, matches buy and sell orders on its own system and usually checks users' identities. Often shortened to CEX.
• crypto assetA digital asset that exists on a blockchain or a similar technology and can be stored and transferred electronically. It is the wider legal term that covers cryptocurrencies, stablecoins and other tokens.

More terms: Regulation, Security & Risk

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• phishing
• 51% attack
• exploit
• pump and dump