Glossary > Travel Rule

Travel Rule

What is the Travel Rule?


The Travel Rule refers to the Financial Action Task Force’s (FATF) recommendation 16 from the 2019 updated guidance.

This rule requires virtual asset service providers (VASPs) to share identity details and know-your-customer (KYC) data between them. This exchange of information must take place before transacting together.

More simply put, for each transaction, the origin VASP must transfer data about the sender to the destination VASP. And the destination VASP must transfer data about the receiver to the origin VASP.

The FATF assesses progress made by public and private sectors in the implementation of the Travel Rule every year.