What is the Travel Rule?
In 2019, the Financial Action Task Force (FATF), a global international anti-money laundering and counter-terrorist financing watchdog, extended its anti-money laundering and counter-terrorist financing (AML/CFT) measures to virtual assets (VA) and virtual asset service providers (VASPs). The Travel Rule, also known as FATF Recommendation 16, is a set of guidelines designed to prevent money laundering and terrorist financing. The Travel Rule mandates that VASPs, such as Altify, obtain and disclose details pertaining to the sender and recipient of a virtual asset transfer to counterpart VASPs or financial institutions, either during the transaction or prior to it. This is consistent with existing practices in the traditional banking sector, where similar requirements apply to the transmission of financial data.
Altify also supports the FATF’s objectives behind introducing the Travel Rule to the crypto industry. In time, we believe that the Travel Rule will lead to higher customer confidence in VASPs and will promote trust in the crypto industry as a whole.
What is a VASP or CASP?
VASP stands for Virtual Asset Service Provider. CASP stands for Crypto Asset Service Provider. These terms are used interchangeably. To put it simply, a VASP or CASP is any platform that offers crypto services to customers, such as exchange services or custody services. Examples include Altify, Binance, Coinbase, etc.
How Does The Travel Rule Affect You as a Customer?
The Travel Rule affects both individual and business customers, with regulations requiring us to take steps to identify, verify, and record certain information about your crypto transactions. This means that you will be required to provide additional information when receiving crypto deposits and making crypto withdrawals.
Altify has integrated with Sumsub as our Travel Rule partner. This enables us to leverage Sumsub’s technology to exchange necessary data — securely and all fully encrypted — ensuring compliance with the regulations while prioritising your security and privacy.
ℹ️ Important
Adhering to the Travel Rule can cause delays in processing deposits and withdrawals as we are required to obtain information, and in some cases verify that information, before processing a crypto transfer. We understand this can be frustrating for clients but we ask for your patience and cooperation as we are legally obligated to perform these actions.
Additionally, Altify only allows first-party transactions — this means sending crypto from one of your wallets to another. We do not permit crypto deposits to be made from anyone else and we do not permit crypto withdrawals to third parties either.
Types of Crypto Wallets
All crypto deposits and withdrawals are categorised as either being from (or being sent to) a Self-Hosted Wallet or a Hosted Wallet. Altify clients must select whether the crypto address associated with a transaction is from a Self-Hosted Wallet or a Hosted Wallet.
| Category | Description |
|---|---|
Self-Hosted Wallets (ex: Ledger, MetaMask, or Phantom) | A self-hosted wallet gives you full control. You hold your own private keys and act as your own bank. This means you are solely responsible for your security – if you lose your recovery phrase, your funds are gone. |
Hosted Wallets (ex: Altify, Coinbase, or Binance) | A hosted wallet is managed by a third party, such as Altify or a traditional exchange. The platform holds the keys on your behalf, similar to how a bank manages your savings account. This offers more convenience and simpler recovery options, but you must trust the provider to keep your assets secure. |
What info do you need to provide us when sending crypto?
First, confirm the crypto is not going to a third party. Altify does not allow third-party withdrawals.
Next, tell us if the destination is a Self-Hosted Wallet (a private address you control) or a Hosted Wallet (a platform or exchange).
If you are sending to a Hosted Wallet, we need details about the provider. If you cannot provide this, or if the provider is not a VASP that we have vetted or connected with, we cannot process the transfer.
If you are sending to a Self-Hosted Wallet, you must confirm it belongs to you. For EU users sending over €1,000, we need proof of ownership. We do this with a Satoshi-Test. We ask for a tiny deposit from your private wallet, and we use the blockchain transaction ID to verify it is yours. If we cannot verify your ownership, you cannot withdraw to that wallet.
What info do you need to provide us when receiving crypto?
You must confirm the crypto is not coming from a third party. Altify does not accept third-party deposits.
Next, tell us if the sending address is a Self-Hosted Wallet (a private address you control) or a Hosted Wallet (a platform or exchange).
If the crypto comes from a Hosted Wallet, we need details about the provider. If the platform is not an approved VASP, or if details are missing, we cannot allocate the funds to your Altify account.
If the crypto comes from a Self-Hosted Wallet, you must confirm it belongs to you. For EU users depositing over €1,000, we need proof of ownership. We do this with a Satoshi-Test. We ask for a tiny deposit from the sending wallet, and we use the blockchain transaction ID to verify it is yours. If we cannot verify your ownership, you cannot use that wallet to fund your Altify account.
What information is required to comply with the Travel Rule?
Recipient's full name and surname (if the recipient is an individual)
Company's registered name (if the recipient is a corporate)
Crypto withdrawal address
Crypto wallet type (Self-Hosted Wallet or Exchange/Hosted Wallet)
Service provider name (if Exchange/Hosted Wallet is selected).
Is there a deposit or withdrawal limit after which you need to provide Travel Rule information?
There is no minimum or maximum limit, all crypto deposits and withdrawals will be subjected to the Travel Rule. However, there are different verification requirements for transactions to (or from) a self-hosted wallet vs. hosted wallets.
What happens if you do not provide the additional information?
If you do not provide the required information, in some cases your transaction may not be processed. Ensure that all necessary details are provided to avoid any interruptions.
Is your information safe?
At Altify, we prioritise security in everything we do and we are fully committed to protecting your data. You may read our Privacy Policy for a detailed overview on how we manage personal data.
How long will your data be retained?
The retention period for collected data will depend on legal requirements and our privacy policy. Generally, we retain data only for as long as necessary to comply with legal obligations.
Does this mean crypto is not decentralised anymore?
A common criticism of the Travel Rule is that it may lead to the increased centralisation of the crypto industry. Keep in mind that the underlying technology that powers all cryptocurrency transactions remains decentralised. Transactions continue to be recorded and confirmed on a public blockchain that isn’t controlled by any single authority.
Altify facilitates the transfer of high volumes of funds, so we have a responsibility to comply with the latest anti-money laundering (AML) and counter terrorist financing (CTF) regulations. While some may feel that the Travel Rule goes against the decentralised nature of cryptocurrency, regulations like this are a key step in legitimising cryptocurrency, building trust in the industry, combating fraud, and keeping our customers’ funds safe.