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FAQ: Travel Rule

Important Information on the implementation of the Travel Rule - what it is and how it affects you

What is the Travel Rule?

The Travel Rule is a regulatory requirement established by the Financial Action Task Force (FATF), an international organisation dedicated to combating money laundering and terrorist financing. It is one of the key measures in financial regulation aimed at increasing the transparency and security of financial transactions.

The EU Regulation 2023/1113 on the transfer of funds and certain crypto-assets has revised Regulation (EU) 2015/847, extending its scope to include the transfer of specific crypto-assets.

 

Why is the implementation of the Travel Rule necessary?

The implementation of the Travel Rule is essential to comply with legal and regulatory requirements for combating money laundering and terrorist financing. Regulatory authorities mandate that VASPs (virtual financial service providers) including Bitpanda monitor the origin and recipient of transactions to ensure they are not used for illegal activities.

This is consistent with existing practices in the traditional banking sector, where similar requirements apply to the transmission of financial data. Adhering to the Travel Rule is crucial to avoid legal consequences and to continue operating in regulated markets and enhance the safety of our community. Additionally, by complying with these regulations, Bitpanda helps maintain the integrity of the financial system and strengthen trust in the cryptocurrency market

 

How does the Travel Rule affect you as a customer?

Starting December 30, 2024, Bitpanda will implement the Travel Rule. This means we will need to collect and share certain information about your crypto transactions.

This will affect both individual and business customers when conducting transactions to and from other platforms that are also subject to this regulation, as well as transactions to and from self-hosted wallets.

 

What does this mean for you? 

  • Additional information: When you conduct transactions through Bitpanda, we will need to collect additional information about the senders and recipients, including those on other crypto platforms as well as self-hosted wallets. This includes your name, address, and other relevant details.
  • Transparency in transactions: The information we collect will be shared with the respective financial institutions to ensure compliance with all legal requirements.

No impact on service: The implementation of the Travel Rule will not result in significant changes to your use of Bitpanda. You can continue conducting your transactions as usual, though there may be additional data requirements and potential delays in processing transactions

 

 

FAQ

Will the Travel Rule affect my ability to send and receive cryptocurrencies?
No, the Travel Rule will not fundamentally affect your ability to send and receive cryptocurrencies. You can continue to conduct your transactions as usual. However, you may be required to provide additional information, particularly when conducting transactions to or from other crypto platforms or self-hosted wallets for the first time.
What information will Bitpanda collect under the Travel Rule?
Information such as names, wallet addresses, and wallet details of the parties involved in a transaction will be collected.
What happens if I do not provide the additional information?
If you do not provide the required information, in some cases your transaction may not be processed. Ensure that all necessary details are provided to avoid any interruptions.
What types of transactions are affected?
The Travel Rule applies to all transactions to and from other crypto platforms, as well as transactions to and from self-hosted wallets. This includes transfers where information about the sender and recipient must be exchanged and retained.
What do I need to do to comply with the requirements?
Ensure that all the information you provide is accurate and complete, especially for larger or more frequent transactions. If you have any further questions, you can always contact our support team.
Will this information be shared with third parties?
The information will only be shared with other regulated financial institutions involved in the transaction, as legally required, and will be treated with the utmost confidentiality.
How will Bitpanda protect my personal data?
We take data protection very seriously and employ comprehensive security measures to protect your personal information. All collected data will be handled in accordance with our privacy policy and transmitted securely.
How long will my data be retained?
The retention period for collected data will depend on legal requirements and our privacy policy. Generally, we retain data only for as long as necessary to comply with legal obligations.