The Travel Rule is an international standard stemming from the recommendations of the Financial Action Task Force (FATF). It requires crypto-asset service providers (CASPs) to collect and transmit information about the sender and recipient of each cryptocurrency transfer. These measures are designed to enhance transparency, prevent money laundering, and combat terrorist financing. As a regulated CASP, Bitstack is subject to this requirement.
Why does Bitstack ask for information about a sender or recipient?
In accordance with the EU Funds Transfer Regulation (EUTFR), Bitstack is required to collect and retain information on both parties involved in each transaction. This information is shared with other providers when a transfer is made between two platforms.
For transactions involving a self-hosted wallet (a wallet whose keys you hold, such as Ledger or Electrum), Bitstack must also verify that you are the rightful owner if the amount exceeds €1,000.
What happens when making a deposit?
From an exchange platform: if the information accompanying the transfer is incomplete (for example, the sender's name), Bitstack may ask you to complete it. The deposit remains on hold until this information is received.
From a self-hosted wallet: depending on the amount, Bitstack may ask you to prove ownership of the wallet. You will be guided through this process. The deposit remains on hold during verification.
Refused deposits: deposits from platforms that do not comply with Travel Rule requirements must be rejected. In this case, you can make your deposit from a self-hosted wallet for which you can prove ownership.
What happens when making a withdrawal?
To an exchange platform: you must provide the beneficiary's information (their name) when initiating the transfer. Bitstack transmits this information, along with your own details, to the recipient platform.
To a self-hosted wallet: in some cases, Bitstack may ask you to verify ownership of the wallet before finalising the transaction.
Failed withdrawals: your withdrawal may fail if the recipient platform does not comply with Travel Rule requirements, or if Bitstack is unable to transmit the required data. In this case, you may use an address hosted on another platform or a self-hosted wallet address.