Travel Rule

In crypto-asset transfers, the blockchain moves the value while the personal data of the originator and the beneficiary travels through a parallel, off-chain messaging channel. The name and account or wallet identifier of both parties are transmitted, and depending on the case the date of birth or an identity document. The industry reference data format is IVMS101, and specialized messaging providers such as Notabene or Sumsub exist. The de minimis threshold set by FATF is 1,000 dollars or euros: above it, full identifying information must be shared.

The Travel Rule closes the anonymity of transfers between regulated intermediaries and brings traceability equivalent to that of traditional banking. Its origin is FATF Recommendation 16, historically the transparency rule for wire transfers, extended to virtual assets by amending Recommendation 15 in October 2018 and through the June 2019 guidance. In June 2025, FATF substantially revised Recommendation 16 within its payment transparency package, broadening its objectives to include fraud prevention and proliferation financing.

In the European Union, the Travel Rule is implemented through Regulation (EU) 2023/1113 (TFR), in force since 29 June 2023 and mandatory from 30 December 2024 for payment service providers and crypto-asset service providers (CASP). Its defining feature is the zero threshold: in the EU, complete data must accompany every crypto-asset transfer, including those below 1,000 euros, making it the strictest implementation worldwide. Exchanges such as Coinbase, Binance and Kraken have deployed Travel Rule messaging to comply with this regulation.