What is the travel rule?
Under U.S. law, the “Travel Rule” refers to regulations issued by the Financial Crimes Enforcement Network (FinCEN) pursuant to the Bank Secrecy Act (BSA). The rule mandates that financial institutions, including Virtual Asset Service Providers (VASPs) such as cryptocurrency exchanges and custodial wallet providers, must collect, retain, and transmit specific information when conducting transfers of $3,000 or more.
The purpose of the Travel Rule is to enhance transparency, combat money laundering, and detect terrorist financing through the identification of parties involved in large virtual asset transactions.
How does the Travel Rule impact you and what information will you need to provide?
When you send or receive cryptocurrency through a regulated platform, and the transaction is $3,000 or more, you may be required to provide:
- Whether the transfer is to yourself or someone else
- The full name of the recipient or sender
- The physical address or other identifying information (such as account number, wallet provider, or ID number)
- The name and details of the counterparty’s VASP (if applicable)
For transactions under $3,000, information may still be collected based on risk-based compliance practices or internal policies.
How might this affect your transactions?
You may experience delays or additional verification steps when sending or receiving cryptocurrency to or from another exchange, especially if that exchange is in a high-risk jurisdiction or does not comply with the Travel Rule.
Incoming transfers lacking required information may be held for review or rejected, and funds may be returned to the originating VASP.
Transfers to self-hosted wallets are generally supported, but the platform may require confirmation of wallet ownership in certain cases. 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?
We are required to collect and transmit Travel Rule information for transactions of $3,000 or more involving cryptocurrency transfers to or from other exchanges or hosted wallets. Transfers between your own wallets (internal transfers) or to self-hosted wallets may also trigger information requests based on risk factors.
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.
Transfers to another CoinJar member using their CoinJar username will not be impacted.
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?
If a cryptocurrency deposit or withdrawal needs additional information from you, it will appear in the Action Required section. You can find this on the Home and Portfolio pages of both the CoinJar app and web platform.
How will my personal information be protected?
To ensure compliance with the Travel Rule, CoinJar has implemented the TRUST Travel Rule solution developed by Coinbase. TRUST adheres to high security standards, including SOC 2 Type II certification, demonstrating a commitment to protecting customer data.