What is the Travel Rule
The Travel Rule is a global regulatory requirement established by the Financial Action Task Force (FATF) to enhance transparency and traceability in cryptocurrency transactions. It mandates Virtual Asset Service Providers (VASPs), such as Pairs, to collect and securely transmit specific information about the originators and beneficiaries involved in virtual asset transfers exceeding a certain threshold (commonly EUR/USD 1,000 or equivalent).
The purpose of the Travel Rule is to prevent money laundering and combat the financing of terrorism by ensuring that transactions can be traced between institutions.
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Is the Travel Rule mandatory for Pairs?
Yes, compliance with the Travel Rule is mandatory in jurisdictions where Pairs operates. In the European Union, regulations such as the 5th Anti-Money Laundering Directive (AMLD5) and updates in AMLD6 require VASPs to adhere to strict guidelines for ...How does the Travel Rule affect Pair's users?
Pairs is implementing Travel Rule measures to ensure compliance while providing a secure and seamless experience for its users. For outgoing transactions: Users may need to provide information about the beneficiary, including their name and whether ...What future steps are expected for compliance?
Pairs will implement Travel Rule measures in phases to ensure compliance across all transfers. For private wallet transactions, users may need to verify ownership and control of these wallets. Notifications and clear instructions will be provided ...How do users provide information for compliance?
For transactions that meet the Travel Rule threshold, Pairs will automatically prompt users to provide the required information through our secure platform. The platform will guide users step-by-step to input and verify the necessary details for both ...Staying Compliant!
Pairs actively monitors and updates its compliance measures to meet evolving regulatory requirements, including the Travel Rule. We are dedicated to protecting our users and maintaining transparency in all operations. For further information, ...