FATF Travel Rule
Definition
The FATF Travel Rule (Recommendation 16) requires financial institutions, including crypto-asset service providers, to collect and transmit originator and beneficiary information alongside transfers, so funds cannot 'travel' anonymously between institutions. In the EU it is implemented by the Transfer of Funds Regulation (EU) 2023/1113, applying to crypto transfers since 30 December 2024.
What it means for a wallet holder
- Exchanges must attach identity information to transfers they send and receive.
- For transfers above EUR 1,000 involving a self-hosted wallet, EU providers must verify the customer owns that wallet.
- Deposits from unverified wallets can be held until ownership and source of funds are documented.
Preparing for it
Ownership verification is the recurring step: each platform may ask you to prove control of your wallet before moving funds. A KYW certificate documents ownership (via Satoshi Test or WalletConnect) together with AML screening, which is the combination Travel Rule reviews typically look for.
FAQ
Does the Travel Rule ban withdrawals to my own wallet?
No. It adds a verification step: EU providers must confirm a self-hosted wallet belongs to their customer for transfers above EUR 1,000. Once ownership is established, transfers proceed normally.
Since when does the Travel Rule apply to crypto in the EU?
The Transfer of Funds Regulation (EU) 2023/1113 applies to crypto-asset transfers since 30 December 2024, with MiCA governing the providers themselves.
Guides on this topic
Free basic check · no card, no KYC upfront