Travel Rule
A FATF anti-money-laundering rule requiring exchanges to share sender and recipient information on crypto transfers above a set threshold.
The Travel Rule is a FATF recommendation, adopted into law by many countries, requiring VASPs (exchanges and other crypto service providers) to collect and pass along identifying information about both the sender and recipient of a crypto transfer above a certain value threshold — similar to information that already travels with traditional bank wire transfers.
In practice, this means that when you send crypto from one exchange to another (as opposed to a private, self-custody wallet), the sending platform may need to share your name and other details with the receiving platform. Thresholds and enforcement vary by country, and compliance across the industry is still uneven, since not every jurisdiction has implemented the rule the same way or at the same time.
Related terms
VASP (Virtual Asset Service Provider)
A term used by FATF for businesses providing virtual-asset services — exchanges, custodial wallets, and similar — subject to AML rules worldwide.
FATF (Financial Action Task Force)
An intergovernmental body that sets global standards for combating money laundering and terrorist financing, including crypto-specific rules.
KYC and AML
KYC is customer identity verification; AML is the broader set of anti-money-laundering procedures that KYC is part of.