It is important for all Singapore users to review the information below carefully, as there have been updates since our initial announcement of the Travel Rule requirement.
What is the Travel Rule?
On 1 June 2019, the Financial Action Task Force (FATF), a global international anti-money laundering and counter-terrorist financing watchdog, officially recommended that member nations adopt value transfer requirements known as the Travel Rule. The regulation relates to the gathering and transmission of required names and account details of the parties involved in digital asset transfers between financial institutions.
Is the Travel Rule mandatory?
The Travel Rule was incorporated under the Payment Services Act (Notice PSN02) by the Monetary Authority of Singapore (‘MAS’). All payment service providers, including Crypto.com, must comply with the requirements.
How do I comply with the Travel Rule?
Providing supplementary information when you transfer digital assets from Crypto.com to a beneficiary institution (e.g., receiving digital asset exchange), including the names of both parties, wallet addresses, residential address, etc continues to be mandatory and required of you.
When you receive a digital asset transfer from an originating institution (e.g., from a digital asset exchange), Crypto.com requires you to declare the details of the originating party. Additionally, Crypto.com requires the originating institution to provide additional information, including the names of both parties, wallet addresses, and residential address, among other things. This information will accompany the digital asset transfer instructions.
How will this affect me now?
To comply with the Travel Rule, Crypto.com will introduce several measures to minimise inconvenience to users. These measures will only affect qualifying Singaporean users.
As part of this implementation, Crypto.com will require you to provide the following information for your transfers:
Outgoing digital token transfers
When you transfer to an external wallet (i.e. non-custodial wallet or other cryptocurrency exchanges), the name of the beneficiary party and other applicable information must be provided before the transfer will occur.
For transfers to external wallet addresses, the information of the beneficiary party will be assigned to the respective digital wallet address. Provided the previously provided wallet address and associated information is still valid, you may not be required to provide the beneficiary party’s information for subsequent transfers to the same digital wallet address.
For transfers using a PayString, you will be required to provide the beneficiary party’s information for each transfer.
Incoming digital token transfers
You should share additional details about your incoming transfers, including the name of the originating party and whether the transfer is from a non-custodial wallet or a cryptocurrency exchange.
How will this affect me in the future?
The implementation will ensure that all incoming and outgoing transfers are compliant with regulatory requirements as they continue to evolve.
Specifically, for transfers involving non-custodial wallets, you will be directed to provide relevant information on the ownership of these wallets. While the provision of the information remains voluntary at present, you can expect it to become a mandatory requirement over time as the regulatory requirements mentioned above continue to evolve.
You will be notified via email on the upcoming measures prior to the roll-out. If you have any questions, kindly reach out to our Customer Support team via the in-app chat or at [email protected].
For further information, please see the following documents provided by FATF and MAS: