At Thalex we are introducing the Travel Rule into our deposit and withdrawal process.
This change will impact the way crypto-asset transfers are done, since, moving forward, transaction requests will be accompanied by additional information as they move between platforms.
In this post we explain, without unnecessary jargon, what the Travel Rule is, where it comes from, what it is for, and what it means for you as a user, and especially how can you prepare and avoid unnecessary delays when moving your funds across platforms.
What the Travel Rule is
The Travel Rule is an international regulation that requires crypto-asset service providers — the exchanges, custodians and platforms like Thalex — to collect, verify and transmit certain information about the person sending (the "Originator") and the person receiving (the "Beneficiary") a crypto-asset transfer. That information "travels" with the transaction — hence the name.
It is not a new idea. The standard comes from traditional banking, where for decades a transfer between banks has had to carry the details of the payer and the payee. It was set out by the FATF (the Financial Action Task Force) as its Recommendation 16, and in 2019 it was expressly extended to crypto-assets. Since then, most jurisdictions have gradually written it into their own law.
One important point: the information is not recorded on the blockchain. It is exchanged over a separate, encrypted and secure channel between the two platforms involved, while the transaction settles on-chain. Your personal data is never exposed publicly on the ledger.
What it is for
The purpose of the Travel Rule is easy to nail down: to prevent money laundering and terrorist financing. It tries to achieve this goal by making crypto-asset transfers as traceable as bank transfers, addressing what was, for years, one of the criticisms levelled at the crypto sector: that it was allowed to move value (funds) without a clear record of who was behind it.
So the Travel Rule wants to close that gap: if every transfer between platforms carries the identity of the sender and the recipient, the authorities can follow the trail where there is a well-founded suspicion, just as they do in the traditional financial system.
For Crypto, this brings legitimacy. An industry that can demonstrate traceability and controls equivalent to those of the banks is one that banks, regulators and institutional investors are willing to work with. In that sense, the Travel Rule is not just a burden — it is part of the ecosystem growing up.
Where the obligation comes from
The Travel Rule is not an internal Thalex policy; it is a global standard that platforms are required to apply. The detail varies by jurisdiction, but the substance is the same everywhere:
- International standard. FATF Recommendation 16 is the common reference that most countries follow.
- European Union. Regulation (EU) 2023/1113 — known as the TFR (Transfer of Funds Regulation) — brings the Travel Rule to crypto-assets and has applied directly across all member states since 30 December 2024. It sits alongside MiCA: where MiCA governs the licensing of providers, the TFR governs the information that must accompany each transfer.
- Other jurisdictions. The United States, the United Kingdom, Singapore, Switzerland, Hong Kong and Costa Rica — among many others — have adopted their own versions of the same rule, with thresholds and technical detail that differ from country to country.
- In the case of Thalex, by being a company incorporated in, and subject to the laws of, Costa Rica, must comply with Travel Rule implementation, in the terms of local legislation.
The amounts above which additional information is required change from place to place. In the United States, for example, the usual threshold is USD 3,000; in the European Union there is no threshold for transfers between two registered providers, though above EUR 1,000 additional checks may be requested. But the underlying principle is identical everywhere.
What information is shared
The information that accompanies a transfer subject to the Travel Rule typically includes:
- The originator (the sender): name, account number or wallet address and — depending on the amount and the jurisdiction — home address, identity document number, or date and place of birth.
- The beneficiary (the recipient): name and account number or wallet address.
That information is transmitted in encrypted form to the counterparty's platform, which is in turn required to protect it and handle it in line with data-protection law. Before completing the transaction, both platforms also verify the counterparty and carry out the appropriate checks against sanctions lists.
What it means for you
In practice, for the vast majority of users the impact is minimal, and comes down to a few changes:
- When you send or receive crypto-assets to or from another platform, you may be asked for some additional detail about the counterparty (for example, the recipient's name).
- On transfers above certain amounts, an extra verification step may be requested — such as confirming that an external wallet belongs to you.
- If the required information is incomplete, a transfer may be delayed or held until it is provided.
None of this changes the nature of your activity or the ownership of your assets. It simply means those transfers now carry the information the law requires, on the same basis that already applies to any bank transfer.
Our commitment
We are applying the Travel Rule because it is a regulatory obligation, but also because it fits how we see this activity: an environment where security, transparency and the protection of users are not at odds with innovation. We will keep you informed of any relevant developments as we roll it out, and our compliance team is available to answer any questions.