What is the Travel Rule?

The Travel Rule is a global regulation designed to prevent money laundering and illegal activities. Due to the implementation of the Travel Rule, we will delete all stored wallet addresses in March. You will need to re-verify them before sending crypto. While we understand this may be very inconvenient for you now, it ensures greater security in the future.

The Travel Rule has long been in place for banks and applies to cryptocurrency transactions in Europe starting 30 December, 2024. It requires Crypto-Asset Service Providers like Coinmerce to share basic information about the sender and receiver for certain transactions. A differentiation is made between a hosted and unhosted wallet.

What is a hosted wallet?

A hosted wallet is a secure and user-friendly digital wallet for storing your cryptocurrency. This type of wallet is managed by an external party, such as a crypto-asset service provider. An example of this is the wallet you use on Coinmerce.

What is an unhosted wallet?

An unhosted wallet is a digital wallet that allows you to have full control over your cryptocurrencies. With this type of wallet, you manage the private keys yourself, making you independent of third parties. Unhosted wallets come in various forms, such as hardware wallets, software wallets, or paper wallets. Well-known examples include Exodus, MetaMask, and Ledger.

What does this mean for me?

The travel rule only applies to cryptocurrency transfers, meaning that you can still trade and make use of your Coinmerce account as usual. If you often make withdrawals or deposits then we have listed the different types of scenarios below.

1. Withdrawal to an unhosted wallet (non-custodial wallet):

If you withdraw cryptocurrency to a self-hosted wallet, Coinmerce must verify that the wallet belongs to you. This is done by:

Uploading a screenshot of your wallet;
Our compliance team processes the verification;
Once verified, you won’t need to verify this wallet again.

2. Withdrawal to a hosted wallet (custodial wallet):

If you withdraw cryptocurrency to a wallet on an exchange or similar service:

Verify the wallet by stating the platform on which the wallet is located;
If you transfer cryptocurrency to someone else then share additional details about the wallet’s owner (receiver);
If it’s your own wallet, you can simply input your details.

3. Deposit from an unhosted wallet:

Depositing cryptocurrency from your verified self-hosted wallet is seamless. If the wallet isn’t verified yet, we’ll ask for verification first before crediting your account.

4. Deposit from a hosted wallet:

If depositing from a hosted wallet, and it’s not automatically recognised:

You’ll need to confirm whether the wallet is hosted or unhosted.
Provide details about the sender of the funds.

What stays the same?

Buying, selling, and swapping cryptocurrencies on Coinmerce is unaffected.
Euro deposits and withdrawals remain unchanged.
You can still transfer crypto between a hosted and an unhosted wallet, but additional verification may be required.

How do I verify my self-hosted wallet?

We provide multiple ways to verify ownership of your wallet:

Uploading a screenshot of your wallet displaying your address (if message signing is not supported).

Pre-verifying your wallet can help speed up future transactions.

What if I don’t provide the required information?

If you do not provide the necessary details, Coinmerce will not be able to process your transaction. This means deposits may be delayed, and withdrawals could be rejected.

What happens if my deposit is held due to missing Travel Rule information?

If we receive crypto from an exchange or wallet that does not provide the required Travel Rule information, your funds may be held temporarily. You may need to provide:

Confirmation of whether the wallet is self-hosted or hosted
Sender’s full name (if applicable)
Additional details depending on the compliance process

Which exchanges and wallets are Travel Rule compliant?

Many major exchanges are working to integrate Travel Rule compliance solutions. If an exchange is compliant, transactions between Coinmerce and that platform should process smoothly. If an exchange is not yet compliant, you may need to withdraw to a self-hosted wallet first.

Can I still withdraw funds to a wallet that is not in my name?

Yes, but for self-hosted wallets, you will need to provide the full name of the wallet owner before the transaction can be processed.

Can I deposit crypto from a wallet that isn’t in my name?

Yes, but for self-hosted wallets, you will need to provide the full name of the sender before the deposit can be credited to your account.

Will this rule apply to every crypto transaction?

The Travel Rule applies specifically to crypto deposits and withdrawals but does not impact trading within Coinmerce or euro transactions.

Will the verification process delay my transactions?

If you use message signing, verification is instant. If you choose manual verification (e.g., a screenshot upload), processing time may be longer due to manual checks.

Your Privacy Matters

Coinmerce is committed to ensuring compliance with the Travel Rule while safeguarding your data. We follow strict security protocols to protect your information throughout these processes.