FATF-TRAVEL-RULE

FATF Travel Rule crypto VASPs Recommendation 16.

Definition

FATF Travel Rule details: Originator information required (name, account number / wallet address, geographic address or national identity number), Beneficiary information required (name, account number / wallet address), transmission to receiving VASP before or simultaneous to transfer. Threshold typically USD/EUR 1000 (EU) or USD 3000 (US FinCEN). Concerned VASPs: crypto exchanges (Coinbase, Binance, Kraken), wallet providers, brokers, OTC desks. DeFi unhosted wallets: self-custody addresses pose challenge (no VASP intermediate), regulators discuss inclusion or exclusion (CASP MiCA EU excluded unhosted wallets transactions). Technical solutions: Travel Rule protocols like Sygna Hub, Notabene, TRP Travel Rule Protocol, Open VASP, Shyft. ISO 24165 DTI integration mandatory EU TFR 2024 (Digital Token Identifier).

Origin

FATF Recommendation 16 historic 1990s wire transfers ; FATF Standards Update 2019 extension to Virtual Asset Service Providers VASPs ; FATF Guidance 2021 implementation ; EU TFR Regulation 2023/1113 effective 30 December 2024 ; ~60 jurisdictions crypto Travel Rule 2024.

Example in context

Coinbase EU user transfers 5 ETH (~$15000) to Binance EU user 31 December 2024: Coinbase transmits Travel Rule data (originator name, KYC address) via Notabene Travel Rule protocol to Binance ; Binance recipient confirms beneficiary identity ; transaction proceeds.

Related terms

• FATF VASP — regulated entity definition.