Travel Rule

What is the Travel Rule?

The Travel Rule is a global anti-money laundering (AML) requirement set by the Financial Action Task Force (FATF) under Recommendation 16. It requires Virtual Asset Service Providers (VASPs), like Uphold, to collect, store, and, when required, share information about the sender and receiver of crypto transactions.

In the European Economic Area (EEA), these requirements are implemented under the European Union Transfer of Funds Regulation (EUTFR) and apply to crypto transfers processed by regulated VASPs.

When is the Travel Rule applied?

The Travel Rule is applied to crypto transactions based on jurisdiction-specific regulatory requirements. These regulations differ depending on where the Virtual Asset Service Providers (VASPs) are located.

Why does Uphold collect and verify sender or receiver details?

Under EUTFR, Uphold must collect and keep information about the sender and receiver of crypto transactions, and share it when transfers happen between two VASPs.

For transactions involving self-hosted wallets, Uphold may be required to:

• Collect sender or receiver information directly from you
• In certain cases, verify ownership of the self-hosted wallet

These requirements help meet regulatory obligations and reduce the risk of financial crime.

What information might I be asked to provide?

Depending on the transaction and local regulations, you may need to provide:

• Sender or beneficiary full name
• Information identifying the sending or receiving exchange
• Confirmation of whether a wallet is self-hosted or custodial
• Additional details required by regulations or the receiving VASP

How does this affect crypto deposits?

Deposits from exchanges (external VASP → Uphold)

If the information (such as the sender’s name or other required details) is missing or incomplete, your deposit may:

• Remain pending until the required information is provided, or
• Be rejected if the sending exchange does not comply with Travel Rule requirements.

You may be prompted to provide or confirm additional information before the deposit can be completed.

Deposits from self-hosted wallets (your wallet → Uphold)

You may be asked to:

• Confirm sender details, and/or
• Verify ownership of the self-hosted wallet

The deposit will remain pending while any required verification is completed.

Rejected deposits

A deposit is rejected if:

• The sending exchange does not adhere to Travel Rule requirements, or
• The Travel Rule information cannot be collected or verified.

In these cases, you can:

• Deposit from a self-hosted wallet (ownership verification may be required), or
• Use another exchange that supports Travel Rule compliance.

How does this affect crypto withdrawals?

Withdrawals to exchanges

When withdrawing crypto to another exchange:

1. We’ll ask you to provide beneficiary details, like the recipient’s name.
2. We’ll share the Travel Rule information with the receiving VASP when you initiate the withdrawal.

Withdrawals to self-hosted wallets

For withdrawals to self-hosted wallets:

• In certain cases, we may ask you to verify ownership of the wallet before completing the transaction.

Failed withdrawals

A withdrawal may fail if the receiving exchange does not comply with Travel Rule requirements.

If this happens, you can:

• Withdraw to another exchange that is Travel Rule compliant, or
• Use a self-hosted wallet address (verification of ownership may apply).

How do you handle my information?

We collect, store, and share Travel Rule information only when required to meet regulatory obligations. All data is handled securely and in accordance with applicable privacy and data protection laws. The information shared between VASPs is securely encrypted and retained only for as long as required by regulation.