At Kriptomat, we strive to make cryptocurrency simple, safe, and accessible. As part of our compliance with global regulatory standards, we want to explain the Travel Rule and how it affects your experience.
The Travel Rule is a regulatory requirement established by the Financial Action Task Force (FATF), an international watchdog that sets standards for combating money laundering and terrorism financing.
It was originally designed for traditional financial systems but now applies to crypto assets and Crypto Asset Service Providers (CASPs), which is what Kriptomat is.
In the European Union, the Travel Rule has been incorporated into national laws via the EU Transfer of Funds Regulation (TFR), as updated in Regulation (EU) 2015/847 and its later iteration Regulation (EU) 2023/1113, and further detailed under MiCA (Markets in Crypto-Assets Regulation). The Travel Rule holds crypto transactions to the same AML (anti-money laundering) standards as conventional financial transactions. The requirements will be adapted into Estonian AML regulation on December 30, 2024.
The rule requires CASPS like us to share specific information about the sender and receiver of a crypto transaction between all involved parties.
Why Does the Travel Rule Exist?
The main goal is to prevent bad actors from using cryptocurrencies for illegal activities, such as:
Money laundering
Terrorism financing
Fraud and other financial crimes
Entities involved in a transaction now share more information about the transaction and individuals or companies involved and easily detect suspicious activity.
How Does This Impact You?
When you are making a crypto withdrawal
When you are making a transaction to an external crypto address, we will ask you for the following:
Name of the beneficiary (the person or entity you are sending to);
First name, last name, if sending to the individual; or
Name of company, physical registered address, if sending to the company;
If you are sending to an address you control;
The name of the service you are sending to.
Please make sure to provide the correct information. Mind that the transaction might stay pending for longer or will not be sent at all, if the information you have provided is false.
After a successful transaction, you will not need to enter this information again.
If you are sending to a private (unhosted wallet) such as Ledger or Metamask, we might ask you to cryptographically sign the address to prove your ownership. This is a one-time check for privately owned addresses.
We will make sure that the steps are easy, quick and secure. All the data is encrypted and kept private, only exchanged between the corresponding parties in a transaction.
What does this mean for your crypto deposits (receiving crypto)?
Please note that the requirement is also applicable to incoming crypto transactions. This means that we need to receive information on the sender when we receive a crypto transaction (or before we receive it). If the service you are using to send your crypto abides by this regulation, then you will need to provide them with the same information we described above.
At times, you may have some additional questions about your incoming crypto deposits, but overall, all crypto deposits should run smoothly.
Frequently Asked Questions
Does the Travel Rule apply to all crypto transactions?
No, it only applies to transactions above the threshold amount or those sent to/from compliant platforms.
Will this affect transaction speed?
In most cases, the process is seamless. However, if additional details are required, there may be a slight delay.
Can I opt out of providing information?
Compliance with the Travel Rule is mandatory for all regulated platforms, including Kriptomat.
Does this mean crypto is no longer private?
No, your privacy is still protected. The Travel Rule is designed to deter illegal activities while ensuring legitimate users can transact securely.
Why do we need to implement the Travel Rule?
As a regulated cryptocurrency platform, Kriptomat is committed to building a secure and transparent ecosystem. By complying with the Travel Rule, we aim to:
Protect our customers from fraud and illicit activities.
Strengthen the trust of regulatory authorities and the broader crypto community.
Need Help?
If you have any questions or concerns, feel free to reach out to our Customer Support Team via live chat or [email protected]. We’re here to help you navigate these changes confidently!
By understanding and complying with the Travel Rule, we can ensure that Kriptomat remains a safe and reliable platform for everyone. Thank you for your cooperation!