Travel Rule
The Travel Rule requires crypto service providers to pass sender and receiver details to each other when crypto moves between them, just as banks do with wire transfers.
How it works
The rule comes from banking. In 2019 FATF, the international anti-money-laundering standard setter, extended it to virtual asset service providers (VASPs). When you send crypto from one exchange to another, the sending side must pass the receiving side the sender's name, address or account number, and the receiver's details.
Thresholds vary. FATF's recommendation applies full requirements to transfers of $1,000 or €1,000 and above, while in the EU, since 30 December 2024, there is no threshold for transfers between crypto providers. Countries adopt the rule at their own pace, so requirements differ between services.
For you this means that when you withdraw to another exchange you may be asked who owns the address and the receiver's name. When sending larger amounts to your own self-custody wallet, the service may ask you to prove the wallet is yours, for example by signing a message or making a small test transfer.
You withdraw 2,000 USDT from one exchange to your account on another. Before sending, the first exchange asks which platform the transfer is going to and whether the account is in your name. The data travels with the transfer, and the second exchange credits it without delay. If the details do not match, the transfer can be held or returned.
A common mistake is entering inaccurate details in the Travel Rule form, or choosing "another person" when sending to yourself. A name mismatch leads to a held or returned transfer. Fill in the form exactly as in your verification on the receiving platform, and for your own wallet be ready to prove ownership.
Questions and answers
What is the Travel Rule in simple terms?
It is a requirement that information about who is sending and who is receiving travels along with a crypto transfer between services.
Why does the exchange ask for the receiver's name when I withdraw?
Because of the Travel Rule. The exchange must pass that data to the receiving side or confirm the wallet belongs to you.
Does the Travel Rule apply to transfers to my own wallet?
In some jurisdictions partly yes: the service may ask you to prove a self-custody wallet is yours. The exact rules depend on the country and the amount.
Related terms
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Updated: 2026-10-19