As required by compliance regulation, when making a withdrawal from Bitfinex and sending your cryptocurrency funds to a Virtual Asset Service Provider (VASP) such as an exchange, specific information is sent for transactions of $1,000 or more in value to one or more Third-Party Services that provide Travel Rule compliance solutions and who make it available to VASPs, as required by the Travel Rule.
What is the Travel Rule?
The Travel Rule is a regulatory requirement for cryptocurrency transactions that aims to:
- prevent money laundering and financing of illegal activities;
- enhance transparency of transactions between VASPs;
- ensure legitimacy of transactions.
You have the option to send travel rule information for withdrawals of cryptocurrencies under $1,000 in value. However, if the amount is equal to or higher than $1,000 in value, Bitfinex is required to send Travel Rule information alongside your cryptocurrency withdrawal request.
In the next step of the withdrawal flow, you will be able to select which VASP you are sending the funds to; if the VASP name is not found in the drop-down list, you can select the “None of the above” option and type in a name and a website.
Important: The recipient exchange or wallet may have policies that prevent them from accepting third-party transfers or have specific Travel Rule requirements. Please always check their policy before you send funds from our platform. If a transaction is rejected and funds are returned to our hot wallet, a manual recovery process will be required, which will incur a recovery fee.
What information is shared in the Travel Rule?
When sending cryptocurrency funds to another VASP, the following transaction and user data will be shared, as listed below:
| Transaction | Individuals’ Data | Entities’ Data |
|
amount |
name |
name |
|
asset |
address |
address |
|
transaction hash |
government ID number (passport, national ID or driver’s license) |
government ID (tax ID, legal entity identifier or registration number) |
|
blockchain addresses |
||
|
identification of the beneficiary VASP |
||
|
identification of the recipient |
You can also find more information on how the Travel Rule will apply on the API withdrawal endpoints and what steps customers can take to prepare for sharing data in our guidelines here.
If you have any inquiries, please feel free to contact Bitfinex Support.