Skip to main content

Travel Rule Requirements

Andre
  • Updated

What is the Travel Rule? 

The Travel Rule is a compliance rule made to stop people from illegally moving money around or funding terrorism. The rule established by an organization called the Financial Action Task Force (FATF) says that companies that handle virtual currencies need to have systems in place to watch and control the movement of money. Similarly as moving funds through traditional banking.

According to the Travel Rule, virtual asset service providers that are licensed or registered for anti-money laundering purposes must have effective systems to monitor transactions and comply with the rule. Registered crypto companies also have to meet regulatory obligations related to client identification, record-keeping, and transaction reporting.


Why do I have to provide additional information for some crypto deposits and withdrawals? 

As of June 1st, 2021, many regulations related to cryptocurrencies came into effect, one of them known as the “Travel Rule”, which requires us to collect the following information on virtual currency transfers over $1,000 CAD in value for Canadian transfers:

  • the name, address and the account number or other reference number (if any) of the person or entity who requested the transfer (originator information); and 
  • the name, address and the account number or other reference number (if any) of the beneficiary. 

CoinSmart must comply with the Travel Rule requirement and take reasonable measures to ask for the information where required. 

CoinSmart’s Commitment to Compliance with the Travel Rule Requirement 

CoinSmart uses an industry-approved third-party solution to comply with the obligations as set out within Travel Rule. This means when you interact on the CoinSmart platform you can expect that we will ask you for information to support our Compliance obligations to the Travel Rule. 

Is the Travel Rule requirement applicable only for CoinSmart Canada? 

With licenses obtained to operate in the United States and Estonia (Europe), CoinSmart will comply with the Travel Rule in line with the respective countries’ regulatory requirements. The requirements have been summarized below: 

Country Minimum Threshold

Information required
United States USD $3,000 The originator Institution must retain the following information:

 

  • The name and, if the payment is ordered from an account, the account number of the transmitter
  • The address of the transmitter
  • The amount of the transmittal order
  • The execution date of the transmittal order
  • The identity of the recipient’s financial institution

The Beneficiary Institution must also retain the following information: 

  • Name and address of the beneficiary or recipient
  • Account number of the beneficiary or recipient
  • Any other specific identifier of the beneficiary or recipient 
Estonia

 

$0

 Information on the Originator Customer:

 

  • Name 
  • Unique identifier of the transaction 
  • Identifier of the payment account or virtual currency wallet 
  • Title, number of an identity document 
  • Place of Birth 
  • Geographic address
  • Plus one of the following: Personal identification code OR Date of Birth

Information on the Beneficiary Customer:

  • Unique identifier of the transaction 
  • Identifier of the payment account or virtual currency wallet


How does this benefit CoinSmart users?

As we continue to work with regulators to meet compliance requirements and combat illicit activities, CoinSmart can continue to be your most trusted, secure, and safe crypto platform to better serve you long term.

Does Travel Rule impact my account?

No, we continue to provide you with the same user experience as before.

Are my transactions only restricted to the Travel Rule limit?

No, it simply means that when your transaction falls within the travel rule limit we may ask you for certain information about the transaction so as to ascertain the details of the transaction for CoinSmart to meet its Travel Rule obligations.


Who uses Travel Rule?
Below are some of the common Travel Rule users:

  • CoinSmart
  • Coinbase
  • Crypto .com
  • Kraken
  • Gemini
  • OkCoin
  • Binance US
  • Coinsquare
  • ShakePay
  • Fidelity Crypto Assets
  • BitMex
  • Bittrex
  • Bitgo
  • Fireblocks
  • Circle
  • Robinhood

Related articles

Comments

0 comments

Article is closed for comments.