Transfer between exchanges
An exchange may ask who you are sending funds to: the recipient's name and the service where they hold an account. This is a normal part of the process, not suspicion.
AML & Compliance
The Travel Rule explained: what it means for an individual
The Travel Rule requires that when crypto-assets are transferred through providers, information about the sender and the recipient travels with the funds. Bank transfers have worked this way for a long time; now crypto transfers do too. We explain where it came from, what changes for an ordinary user and how to avoid a stuck transfer.
How it works
- 1
Where the rule comes from
It is Recommendation 16 of the FATF, the international anti-money-laundering body. In the European Union it is set out in Regulation (EU) 2023/1113, which applies from 30 December 2024.
- 2
Who it applies to
Crypto-asset service providers: exchanges, brokers, custodial wallets. The rule binds them, not individuals directly — but in practice it involves the client.
- 3
What is passed on
Details of the sender and recipient: names, wallet addresses or account numbers, and for the sender also the address, document number or date and place of birth.
- 4
When data is checked
If the data is missing or incomplete, the provider may hold or return the transfer and request the missing information.
What it means for you
Withdrawal to your own wallet
If the wallet does not belong to a provider, there is nowhere to send the data. For transfers above EUR 1,000 the provider must verify that the address belongs to you or the recipient — for example, by asking you to sign a message with that wallet.
Incoming transfer
When crediting funds, an exchange may ask who sent them. If your answer does not match what the sender's provider passed on, crediting may be delayed.
How to transfer without delays
Before sending
- Ask the recipient for their full name exactly as it appears in their exchange account
- Find out which service holds their wallet, or whether it is a self-hosted wallet
- Double-check the address and network — the rule will not fix a mistake
If it is your own wallet
- Be ready to prove ownership: sign a message or make a test transfer
- Keep wallet records that let you show your connection to it
- Do not use addresses that someone else can also access for large amounts
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What this does not change
The Travel Rule does not make a transfer "verified" and does not answer whether the funds themselves are clean. It is a rule about transparency of the parties. The origin of funds and the history of an address are checked separately.