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What is the Travel Rule and what are pending payments?

  • Updated


What is the travel rule?

From September 1, 2023 new regulations, referred to as the "Travel Rule," have taken effect. They have been designed to strengthen the security and integrity of cryptocurrency transactions while combating money laundering and terrorism financing.

 

The Travel Rule is a recommendation from the FATF to increase transparency and accountability within the crypto industry. The implementation of the Travel Rule in the UK requires all cryptocurrency transfers in the UK to be accompanied by information about the sender and the recipient. All intermediaries involved in processing the transaction must be equipped to share and receive this information.

 

How does the Travel Rule impact you and what information will you need to provide?

When you send or receive cryptocurrency, you will now be asked to provide the following details:

  • Whether the transfer is to yourself or someone else.
  • Information about the recipient or sender, including their name, and in some cases, their address.
  • Details about the recipient's or sender’s wallet provider (for example, whether the wallet is provided by a cryptocurrency exchange or not).

 

How might this affect your transactions? 

In some cases, you may be asked to provide us with more information where we receive an incoming cryptocurrency deposit without associated Travel Rule information.

 

We may be unable to support certain incoming transfers from cryptocurrency exchanges when Travel Rule information has not been shared with us or when incoming transfers are from exchanges located in high-risk jurisdictions, as determined by our internal policies. Such transactions will be held until the third-party exchange complies with the Travel Rule requirements or we are able to return the funds to the exchange.

 

We will support the majority of transfers between CoinJar and self-hosted wallets. You can learn more about various types of self-hosted wallets on CoinJar Learn.

 

You can view and action any pending cryptocurrency deposits and withdrawals via the Pending Payments screen accessible from the CoinJar home screen in the web browser under the “Action Required” section or through the “Review your pending payment” banner in the mobile app only visible when there is a pending payment.

 

Frequently Asked Questions

Which transactions are impacted?

CoinJar is required to collect additional information for transactions where a customer based in the United Kingdom sends cryptocurrencies from their CoinJar account to an address outside of CoinJar, or receives from an address outside of CoinJar.

We may not be able to support certain incoming transfers from cryptocurrency exchanges that are located in high-risk jurisdictions, as determined by our internal policies, or that are not registered with the Financial Conduct Authority. Such transactions will be held until the third party exchange complies with the Travel Rule requirements or we are able to return the funds to the exchange. 

 We will support the majority of transfers between CoinJar and self-hosted wallets. You can learn more about various types of self-hosted wallets on CoinJar Learn.

 

Why was my withdrawal to another exchange rejected?

If you initiate a withdrawal to another exchange, please note that the receiving exchange may decide to accept or reject the transaction. Rejections might occur due to name discrepancies or if the receiving exchange's monitoring systems detect potential issues.

Should a transaction be rejected, we will promptly notify you via email and suggest that you either attempt the withdrawal again, or reach out to the receiving exchange for further clarification.

 

Where can I check my pending transactions?

You can view and action any pending cryptocurrency deposits and withdrawals via the Pending Payments screen accessible from the CoinJar home screen in the web browser under the “Action Required” section or through the “Review your pending payment” banner in the mobile app only visible when there is a pending payment.

 

How will my personal information be protected?

To ensure compliance with the Travel Rule, CoinJar has partnered with Notabene, a reputable firm specialising in this area. Notabene adheres to the highest security standards, including SOC2 Type II certification.

 

 



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