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 addresses, 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 applicable Singapore users.
In summary, outgoing digital token transfers can only be made:
from your custodised/centralised crypto wallet with Crypto.com directly to your own non-custodial/decentralised crypto wallet. You cannot make digital token transfers to any third party’s non-custodial crypto wallet directly from your custodised/centralised crypto wallet with Crypto.com. You can still send digital token transfers from your custodised/centralised crypto wallet with Crypto.com to any other custodised/centralised crypto wallet whether with Crypto.com or other service providers;
from your custodised/centralised crypto wallet with Crypto.com directly to your own non-custodial/decentralised crypto wallet will only work, if your non-custodised wallet is “white-listed”; and
up to a limit of SGD20,000 per calendar month.
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), you are required to provide the name of the beneficiary party and other applicable information.
You may not be required to provide wallet address information for subsequent transfers if the information initially provided is still current and valid, as determined by us. Once the provided information has been verified, outgoing transfers to that wallet address will be accepted.
Outgoing transfers to non-custodial wallets are limited to 1st party only (i.e non-custodial wallets owned by you) - this means you cannot perform outgoing transfers from your Crypto.com custodised wallets to a 3rd party non-custodial wallet directly.
However, you are able to perform outgoing transfers to cryptocurrency exchanges (wallets) belonging to you or to any third party.
For transfers using PayString, you will be required to provide the beneficiary party’s information for each transfer.
A monthly transfer limit of 20,000 SGD will be imposed for all outgoing transfers to non-custodial wallets, as applicable. The limit will reset at the beginning of each month. You will be able to check on your remaining limit on the wallet address page.
Incoming digital token transfers
When you receive transfers from an external wallet (i.e a non-custodial wallet or a cryptocurrency exchange), you are required to provide the name of the originating party and other applicable information before the incoming transfer can be accepted.
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: