Travel Rule

The Travel Rule is a regulation that requires crypto platforms to collect and share personal information when transferring digital assets between parties. Originally developed for traditional finance, it's now being applied to crypto under anti-money laundering laws.

In the UK, the Travel Rule came into effect in September 2023, and applies to all FCA-registered cryptoasset platforms In the UK, it's part of the broader Markets in Crypto-Assets (MiCA) framework.

If you're sending or receiving crypto worth €1,000 or more, platforms must collect details about both the sender and recipient — including names, wallet addresses, and in some cases, account identifiers. This applies to transfers between exchanges as well as from exchanges to self-custody wallets, depending on risk assessments.

The goal is to make it harder for crypto to be used for illicit activity by increasing traceability.
Learn more about how this connects to broader reporting rules like CARF.