What is the Travel Rule?
The Travel Rule is a regulation in some countries aimed at preventing financial crime, such as money laundering and terrorist financing. It requires crypto platforms to collect and share information about certain cryptocurrency transfers with other regulated platforms. Think of it as similar to how traditional banks are required to handle wire transfers between each other.
How does the Travel Rule benefit crypto users?
- Enhanced Security: Helps prevent criminals from using crypto for illegal activities.
- Increased Transparency: Sharing information between regulated crypto platforms allows for better tracking of fraudulent transactions.
- More Legitimate Market: Fosters trust and attract more users and investors, contributing to a healthier and safer crypto ecosystem.
Who is affected by the Travel Rule?
The Travel Rule applies to crypto exchanges, custodial wallet providers, and some DeFi platforms. While it primarily affects these businesses, it indirectly impacts users, as you may be asked to provide information about the person you’re sending crypto to or receiving it from.
What does the Travel Rule mean for me?
As a Blockchain.com user, you may be prompted to provide additional information when sending or receiving crypto. This is simply a part of complying with regulations that help maintain a secure and legitimate crypto ecosystem.
Depending on the type of wallet and transaction, Blockchain.com may need to collect certain details:
- For sending crypto: We may ask for the name and identifying information of the person you are sending crypto to.
- For receiving crypto: We may need to collect information such as the name and address of the person you’re receiving crypto from.
For example, if you are sending Bitcoin from your Blockchain.com wallet to a self-hosted wallet, you may need to declare the recipient and verify their wallet address.
What if I choose not to provide this information, do not have the information required, or make a mistake when submitting this information?
If you don’t provide information required under the Travel Rule, your transaction may be delayed or canceled.
In the event you make a mistake when providing this information, we won't block or delay your transaction without first working with you to resolve the issue. Please contact our Customer Support team who will be able to assist.
Blockchain.com’s Commitment
At Blockchain.com, we are committed to complying with regulatory requirements while ensuring a seamless user experience. We are continually exploring solutions to stay compliant while delivering the best possible products & services.
How does Blockchain.com protect my data?
We understand that privacy is a top concern. Rest assured, we only share the necessary information with regulated entities in line with the Travel Rule, and we handle your data securely, in compliance with our Privacy Policy. Data is fully encrypted and adheres to the strict requirements of ISO27001 certification.
For further information
We recommend visiting the official FATF website for more information: https://www.fatf-gafi.org/en/home.html
Please note that regulations can be complex and may differ by jurisdiction. This guide provides a general overview of the Travel Rule.