GlossaryAdvanced

Travel Rule

A regulatory requirement that certain transaction and identity information travel with a transfer between platforms.

The Travel Rule is a regulatory requirement, adapted from traditional finance, requiring certain sender and recipient information to be shared between regulated platforms when funds are transferred above a specified threshold.

Its specific application to crypto transfers between platforms has been an active, evolving area of regulatory development and industry implementation. See Kaavon's "Virtual Asset Service Provider" and "Anti-Money Laundering" glossary definitions for the kind of platform this obligation applies to and the broader compliance category it sits within.

Examples

A large transfer between two regulated exchanges might trigger Travel Rule information-sharing requirements.
Travel Rule implementation across crypto platforms has developed gradually and unevenly by jurisdiction.