In 2019, the Financial Action Task Force (FATF) stated that the Travel Rule would extend to cryptocurrency companies. The Travel Rule has now been enforced in Estonia, meaning some changes to cryptocurrency withdrawals here at Coinmetro must now be enforced. Here's everything you need to know about the Travel Rule, and how it may affect the way you send cryptocurrencies from your Coinmetro account.

What is the Travel Rule?

The FATF Travel Rule is a new requirement for cryptocurrency exchanges, digital wallet providers, and financial institutions that exchange, hold, safe keep, convert and sell virtual assets. This rule requires virtual asset service providers, or VASPs, to disclose specific data when transacting crypto assets over a particular threshold.

The purposes of the FATF Crypto Travel Rule are:

  • to eliminate the anonymity and secrecy of the wallet owner

  • to make transaction monitoring more transparent

  • to make the crypto space less fraudulent and help to fight against money laundering, terrorist financing and other criminal activities.

The Crypto Travel Rule

What does this mean for Coinmetro?

Coinmetro is now under the obligation to collect, verify, transmit and store certain information about the sender and the receiver of cryptocurrency withdrawals. This means that if you are withdrawing crypto to an external wallet address, you will be required to confirm:

  • whether you are sending the crypto to your own wallet

  • if you're sending to a third party, the recipient's full name and wallet address

  • whether you are sending the crypto to a wallet or another exchange.

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