How will the Travel Rule implementation at Bitvavo affect my crypto transactions?

Summary: This article explains how the upcoming implementation of the Travel Rule regulation will affect your crypto deposits and withdrawals at Bitvavo. It details new verification requirements for crypto transactions over €1,000, steps you need to take, and provides guidance on sending and receiving crypto to self-custody wallets and other exchanges.

Introduction

To comply with the Travel Rule, all crypto service providers within the EU, including Bitvavo, will have to implement certain changes to the way they handle clients' crypto deposits and withdrawals, especially for amounts over €1,000. Since the regulation officially enters into force on December 30th, the changes will already be visible in early 2025 across the regulated crypto industry in the EU.

• Trading crypto will remain unaffected
• Depositing and withdrawing euro will remain unaffected.  

What is Travel Rule?

The TFR or Transfer of Funds Regulation, more commonly known as the Travel Rule, is a regulation that requires financial institutions to share certain customer information during transactions to prevent financial crimes like money laundering and terrorist financing. Originally applied to traditional banking transfers, it ensures that sender and receiver information accompanies a transfer, allowing both institutions to perform necessary compliance checks.

This rule is now being extended to cryptocurrency transactions. All crypto service providers within the EU, including Bitvavo, are required to collect and share specific information for qualifying transactions.

How will this affect my crypto transactions

Transactions to or from self-custody wallets (self-hosted, non-custodial wallets)

If you make a crypto transaction over €1,000 to or from self-custody wallet address that's not verified yet, we will be required by the Travel Rule to verify that the address belongs to you. We aim to make this process as seamless as possible by offering several methods to verify your address ownership.

Verification methods

1. By connecting a wallet: The fastest way to verify your address is by connecting your wallet (e.g., Metamask, Ledger) and signing a message. If your wallet doesn't appear in the list immediately, you can try finding it via WalletConnect.
2. By uploading an image: If your wallet isn't supported or you can't find it, select My wallet isn't here and proceed to verify your address with an image. Please note that this method may result in manual verification and potential delays.

Transactions to or from other exchanges (hosted, custodial wallets)

For crypto transactions to or from addresses that belong to another exchange, broker, or crypto service provider (all commonly known as CASPs), address verification is not needed. However, in cases when we can't identify the CASP automatically, we might ask you to select the correct service provider for that address manually, regardless of the crypto amount you're depositing or withdrawing. 

What do I need to do?

For sending crypto from Bitvavo (crypto withdrawals)

When withdrawing crypto, you'll be asked to provide additional information during the withdrawal process, depending on the case:

• If you initiate a crypto withdrawal over €1,000 to a self-custody wallet address that's not verified yet, you will be prompted to verify your address using one of the verification methods mentioned above. Once your address is verified, you'll be able to resume your withdrawal. 
  
  
• If you initiate a crypto withdrawal to an address we don't recognize automatically, you'll first be asked to select the wallet type it belongs to (exchange or self-custody), regardless of the amount. For exchange addresses, you'll only need to select the correct service provider, while for self-custody wallets, you'll be prompted to verify the address if the withdrawal amount is more than €1,000.

For receiving crypto to Bitvavo (crypto deposits)

When there's an incoming crypto deposit, you'll see it under Pending transactions in your account. From there, you'll be prompted to submit additional information depending on the case: 

• For an incoming crypto deposit over €1,000 that is coming from an unverified self-custody wallet address, you'll be prompted to verify that the address belongs to you. After verifying the address, we'll start processing your deposit. 
  
  
• For an incoming crypto deposits from addresses we don't recognize automatically, you may be asked to state the wallet type (exchange or self-custody) or to declare if the deposit is coming from yourself or someone else, regardless of the amount. 

Timeline

The Travel Rule requirements will be enforced starting in 2025. We will continue to update you with any new information or changes to the process.

FAQs

Need help?

If you have any questions or need assistance with the new verification process, please contact support@bitvavo.com.