1. What is the Travel Rule, and why is it important?
The Travel Rule is a global anti-money laundering (AML) and counter-terrorism financing (CFT) regulation by the Financial Action Task Force (FATF) and for EU - Regulation (EU) 2023/1113 aimed at increasing transparency in crypto transfers. It requires Virtual Asset Service Providers (VASPs)/CASPS like Konto.com to collect and share certain information about the sender and recipient of crypto transactions to protect our platform and community from misuse and to:
- Allow VASPs/CASPs and financial institutions to identify, report, or block transactions involving sanctioned individuals or entities
- Assist law enforcement in tracing and prosecuting illegal activities.
- Enable financial intelligence units to analyze suspicious transactions.
Compliance with the Travel Rule ensures Konto.com meets legal and regulatory obligations while enhancing security and trust in crypto transactions. Similar to banking regulations, this helps prevent illicit activities and supports a safer and more transparent crypto ecosystem.
2. How does the Travel Rule affect my crypto transfers on Konto.com?
Konto.com will now collect and securely share transaction details to comply with regulatory requirements. This applies to transactions with other regulated platforms (VASPs) and self-hosted wallets. When you deposit and/or withdraw crypto through your Konto.com Account, we will ask you to select to whom you are sending it.
3. What happens if I don’t provide the required information?
If you don’t select to whom you are sending crypto, you will not be able to proceed further with the action and your transaction may not be processed until the necessary details are provided.
4. Will I be asked for additional information for incoming transfers?
Yes, if you receive or send crypto from a VASP/CASP or self-hosted wallet, you will need to provide sender and recipient details, such as your full name, address, personal valid identifiers and wallet information, when transacting with other platforms or self-hosted wallets. In some cases, transfers without the required Travel Rule information may be locked until verification is complete.
5. Is my personal information safe?
Konto.com takes the privacy and security of your personal information very seriously. The data collected to comply with the Travel Rule is handled securely and in accordance with applicable privacy laws. For more details, please review our Privacy Policy.
6. Do I need to provide this information for every transfer?
Yes, we require confirmation for every transfer.
7. What is MiCA, and how does it relate to the Travel Rule?
MiCA stands for the ‘Markets in Crypto-Assets’ regulation. It is a comprehensive EU regulation designed to establish uniform rules for the cryptoasset market across Europe.
MiCA applies to cryptoassets that are not currently regulated by existing financial services laws and includes guidelines on transparency, disclosure, authorization, and supervision of transactions.
For users, MiCA aims to improve market integrity and financial stability while helping you make informed decisions about cryptoassets by ensuring you have access to clear and accurate information about risks. The Travel Rule is one of the measures under this regulation to ensure safer and more transparent crypto transactions within the EU.