The Travel Rule is a critical regulatory requirement for financial institutions, including custodial cryptocurrency exchanges. It mandates the sharing of specific customer information when transferring funds above a certain threshold. This rule enhances transparency and helps prevent illicit activities like money laundering within the digital asset ecosystem.
For users of cryptocurrency platforms, understanding and providing the required Travel Rule information is essential for seamless transactions. The specific data you need to provide can vary significantly depending on your region and the nature of your transaction. This guide breaks down the mandatory fields for various jurisdictions to help ensure your crypto transfers are compliant and processed without delay.
Understanding the Core Travel Rule Data Fields
The Travel Rule requires the sender's financial institution to share specific information about the originator and the beneficiary. For cryptocurrency sends, this translates into a set of standardized data fields.
Key Required Information
The specific data you must provide will depend on the regulations in your jurisdiction. However, the core set of potential fields includes:
- Beneficiary Wallet Type: Specifies whether the receiving wallet is a self-hosted wallet (e.g., a private hardware or software wallet) or held by another exchange. The standard values are
WALLET_TYPE_SELF_HOSTEDorWALLET_TYPE_EXCHANGE. - Is Self: Indicates whether you are sending funds to a wallet owned by yourself. The values are typically
IS_SELF_TRUEorIS_SELF_FALSE. - Beneficiary Name: The full legal name of the person or entity receiving the funds.
- Beneficiary Address: The postal address of the beneficiary, provided as an object containing fields for street address, city, state, postal code, and country code.
- Beneficiary Financial Institution: For transfers to another exchange or Virtual Asset Service Provider (VASP), this is a unique identifier for that institution.
- Transfer Purpose: A brief description of the reason for the transaction, such as 'Savings' or 'Payment for goods'.
- Beneficiary Country: This is derived from the
countryfield within thebeneficiary_addressobject and must be in the ISO 3166-1 alpha-2 country code format (e.g., "US" for the United States).
To find the correct identifier for a beneficiary's financial institution, you often need to consult an official directory. 👉 Explore more strategies for locating VASP identifiers.
Travel Rule Requirements by Jurisdiction
Regulatory obligations differ around the world. Below is a detailed breakdown of the mandatory Travel Rule fields for specific countries and regions.
United States (US)
Currently, populating the travel_rule_data field for cryptocurrency transfers is not a mandatory requirement for users in the United States.
Canada (CA)
For Canadian users, the primary required field is beneficiary_wallet_type.
A basic compliant data set for a self-hosted wallet looks like this:
{
"beneficiary_wallet_type": "WALLET_TYPE_SELF_HOSTED"
}However, if you are sending to another exchange (WALLET_TYPE_EXCHANGE) and the transaction value is equal to or greater than 999 CAD, additional information is required. You must also provide the beneficiary_name and beneficiary_address fields.
Great Britain (GB)
Transactions originating from Great Britain require four key pieces of information: is_self, beneficiary_name, beneficiary_country, and beneficiary_wallet_type.
An example for a self-transfer to a private wallet would be:
{
"is_self": "IS_SELF_TRUE",
"beneficiary_name": "Jane Doe",
"beneficiary_address": { "country": "GB" },
"beneficiary_wallet_type": "WALLET_TYPE_SELF_HOSTED"
}If the transfer is directed to another exchange (WALLET_TYPE_EXCHANGE), you must also include the beneficiary_financial_institution field with the recipient VASP's unique identifier.
Bermuda (BM)
The regulations in Bermuda require three fields: beneficiary_name, beneficiary_wallet_type, and is_self.
A typical data submission would include:
{
"is_self": "IS_SELF_FALSE",
"beneficiary_name": "John Smith",
"beneficiary_wallet_type": "WALLET_TYPE_EXCHANGE"
}Singapore, Hong Kong, and Philippines (SG/HK/PH)
These jurisdictions share a common set of required fields: beneficiary_name, beneficiary_wallet_type, beneficiary_country, and is_self.
For transfers to a self-hosted wallet, a Satoshi Test is often required to verify the ownership of the destination wallet. This verification process is typically completed through a mobile application.
If the transfer is headed to another exchange, the beneficiary_financial_institution field becomes mandatory, requiring the unique identifier of the receiving VASP.
European Union (EU)
The Travel Rule framework in the EU applies to a wide range of member states, including Germany (DE), France (FR), Italy (IT), Spain (ES), and the Netherlands (NL), among others. The required fields are beneficiary_name, beneficiary_wallet_type, beneficiary_country, and is_self.
A key threshold exists for self-hosted wallets: if the transaction amount exceeds 1000 EURO, a Satoshi Test is required to verify wallet ownership, which is facilitated through a mobile app.
For any transfer where the beneficiary_wallet_type is WALLET_TYPE_EXCHANGE, the beneficiary_financial_institution field must be populated with the appropriate VASP identifier. 👉 Get advanced methods for cross-border compliance.
All Other Jurisdictions
If your country or jurisdiction is not listed in the sections above, there are typically no additional travel_rule_data requirements to fulfill. You are not obligated to populate these fields for your cryptocurrency transfers.
Frequently Asked Questions
What is the purpose of the Travel Rule?
The Travel Rule is an anti-money laundering (AML) and counter-terrorist financing (CFT) regulation. It aims to increase transparency in financial transactions by ensuring that basic customer information follows the funds from the sender's institution to the beneficiary's institution, making it harder to move money anonymously.
How do I find the correct VASP identifier?
The unique identifier for a Virtual Asset Service Provider (VASP) can typically be found in official Travel Rule VASP directories. These directories list registered institutions along with their assigned codes. You will need to obtain this identifier from your recipient or look it up in the relevant database for your region.
What happens if I don't provide the required Travel Rule data?
Failing to provide the mandatory information for your jurisdiction may result in your transaction being delayed, rejected, or blocked by the sending or receiving platform. Compliance is necessary to ensure the smooth processing of your cryptocurrency transfer.
Is the Travel Rule the same in every country?
No, the implementation of the Travel Rule varies by country and region. Different regulatory bodies have established their own thresholds and specific data requirements. It is crucial to understand the rules that apply specifically to your location.
What is a Satoshi Test?
A Satoshi Test is a method used to verify that the sender actually owns and controls the self-hosted wallet address they are sending funds to. It usually involves signing a small, randomized transaction with the private key of the destination wallet to prove ownership.
Does the Travel Rule apply to small, personal transfers?
Most regulations include a minimum threshold value. Transfers below this value are often exempt from the full Travel Rule requirements. For example, in Canada, the threshold is 999 CAD. Always check the specific rules for your country to determine if your transfer qualifies for an exemption.