Travel Rule crypto, a global regulation requiring crypto exchanges to share sender and receiver info on transfers over $1,000. Also known as FATF Rule 16, it’s not a suggestion—it’s a legal requirement for any exchange operating in the U.S., EU, UK, Japan, and most major economies. If you’ve ever tried to send crypto from Coinbase to Binance and got blocked, or seen a message saying "additional verification required," this is why.
The FATF guidelines, the international body that sets anti-money laundering standards for financial systems pushed this rule to stop criminals from using crypto to hide funds. But it didn’t just target bad actors. It changed how VASP compliance, the obligation for crypto platforms to act like banks by collecting user data works across the board. Now, if you send $1,500 in ETH from one exchange to another, both platforms must verify your identity and share your name, address, and wallet address with each other. No exceptions. Even if you’re just moving your own funds.
This rule doesn’t apply to peer-to-peer trades or wallets you control alone. But as soon as you use an exchange—even to withdraw to your own hardware wallet—the rule kicks in. That’s why some smaller platforms shut down or refuse to serve users from certain countries. They can’t afford the legal overhead. And that’s why you’re seeing more restrictions on trading volume, especially in markets like Russia and Nigeria, where crypto rules are tightening fast.
The real impact? Your transfers take longer. Your privacy shrinks. And if you’re using a platform that doesn’t follow the rule, you might lose access to your funds. Some exchanges now freeze withdrawals until you complete KYC, even if you’ve used them for years. Others refuse to accept deposits from non-compliant platforms. It’s not about trust—it’s about legal survival.
What you’ll find below are real cases of how this rule is playing out: why trading volume dropped after new rules hit, how Russia’s crypto laws tie into global compliance, why some airdrops vanished overnight, and how exchanges like Mercurity.Finance and Crypton are adapting—or failing to. These aren’t theoretical debates. These are the daily realities for anyone moving crypto today.
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