Travel Rule (FATF)

The Travel Rule is a requirement from the Financial Action Task Force (FATF), the global anti-money-laundering standard setter, that financial institutions pass on information about the sender and recipient when transferring funds. In June 2019, FATF extended this rule, part of its Recommendation 16, to virtual asset service providers (VASPs) such as crypto exchanges.

In practice, when you send crypto from one exchange to another above certain thresholds, the sending exchange must share your name and account details, and details of the recipient, with the receiving exchange. When you withdraw to a self-hosted wallet, many exchanges now ask you to confirm the wallet belongs to you or to name the owner.

Implementation varies by country. The European Union's Transfer of Funds Regulation applies the rule to all crypto transfers by service providers from 30 December 2024, with no minimum threshold. Many exchanges use industry messaging protocols to exchange the data.