Travel Rule
A regulation requiring crypto firms to share sender and recipient information for transfers above a threshold.
The Travel Rule (extended to crypto by the FATF) requires regulated crypto service providers — exchanges, custodians — to collect and share identifying information about the sender and recipient of transfers above a certain value, mirroring long-standing rules for bank wires. The data must “travel” with the transaction between institutions.
For users, it’s why exchanges increasingly ask who you’re sending crypto to or request information on incoming transfers from other platforms. It’s a cornerstone of crypto AML compliance and a point of friction with crypto’s pseudonymous ethos — particularly for transfers to self-custody wallets, where there’s no institution on the other side. Implementation varies by jurisdiction and remains an evolving compliance challenge.