Travel Rule Overview for Crypto Traders and Exchanges

When working with Travel Rule, a global anti‑money‑laundering (AML) requirement that forces crypto service providers to share sender and receiver information for transfers above a set threshold. Also known as FATF Travel Rule, it helps regulators track illicit flows across borders. This rule became a must‑follow after the Financial Action Task Force (FATF) issued its guidance in 2019, and today almost every jurisdiction references it in their crypto laws.

Key Players and How They Interact

The FATF, the intergovernmental body that sets AML standards for financial institutions worldwide defines the core data fields—name, address, and transaction ID—that must travel with large crypto moves. MiCAR, the EU's Markets in Crypto‑Assets Regulation then takes those standards and codifies them for European exchanges, adding strict reporting deadlines and penalties for non‑compliance. Together with traditional AML and KYC processes, they form a three‑layer safety net: FATF provides the global template, MiCAR translates it into regional law, and AML/KYC tools enforce it at the platform level.

In practice, a crypto exchange must collect the required information from users, encrypt it, and transmit it to the counter‑party’s compliance system whenever a transfer exceeds the $1,000 (or equivalent) limit. This data exchange happens via APIs like the Travel Rule Information Sharing Architecture (TRISA) or the InterVASP protocol. Exchanges that skip these steps risk hefty fines, being shut out of banking services, or even criminal charges. On the flip side, proper implementation builds trust with regulators, banks, and users who want a safer market.

Below you’ll find a curated set of articles that dig into the nitty‑gritty of the Travel Rule: from how FATF’s guidelines shape global policy, to the specific compliance steps required by MiCAR, to real‑world case studies of exchanges that got it right—or wrong. Whether you’re a trader curious about how your data moves, a compliance officer building a TRISA‑compatible system, or just a crypto enthusiast keeping an eye on regulatory trends, the posts ahead break down the rule’s impact in plain language and practical terms.