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.
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.