Frequently Asked Questions (FAQs) about the Travel Rule

Frequently Asked Questions (FAQs) about the Travel Rule

What is the Travel Rule?

In this article, we answer Frequently-Asked-Questions about the Travel Rule and how it will affect you as a Coinhako user. 

 

1. What is the Travel Rule?

In June 2019, global regulators introduced the Travel Rule to combat Anti-Money-Laundering/Counter-Financing-Terrorism (AML/CFT) challenges associated with the increasing usage of cryptocurrencies across the globe. The implementation of the Travel Rule will impact Digital Payment Token Service Providers (DPTPs) and the cryptocurrency industry at large.

How does the Travel Rule work?

Whenever a user of one DPTSPs sends/receives cryptocurrency to another DPTSPs , the originating DPTSPs must share identifying information about both sender and recipient with the beneficiary DPTSPs in an “immediate and secure” manner. Hence, we may required your assistance to process certain cryptocurrency deposits/withdrawals with Coinhako.

These rules will only be applied to VASPs, such as cryptocurrency exchanges, and will not affect individuals who choose to transact in cryptocurrencies.

2. How will the Travel Rule impact you as a Coinhako user?

These Travel Rule measures will not change how you buy, sell, or swap cryptocurrencies on our platform. However, they will affect the way you send and receive cryptocurrencies. 

In order to align with the Travel Rule, we will be introducing a series of updates to ensure the continuity of our services for you:
User who wish make crypto deposits (“Receive”) and withdrawals (“Send”) from/to other personal wallets / exchanges / service providers will be required to provide supplementary information regarding the transfer.

  • For transactions worth 1500 SGD or below, users will have to provide the Sender / Recipient’s full name and the personal Wallet / Exchange /Service Provider name.

  • For transactions worth more than 1500 SGD, users will have to provide additional details, including:

    • The Residential address or ID/Passport number if the sender / recipient is an Individual.

    • The Business address or Business registration number if the sender / recipient is an Entity.

If you only use Coinhako to trade and do not intend to deposit or withdraw from personal wallets or other platforms, these updates will not affect you, and no further action will be required from you. 

3. Does Coinhako provide a list of high-risk or sanctioned exchanges?

Coinhako does not publish a fixed list of high-risk or sanctioned exchanges / service providers. The status of exchanges / service providers may change over time due to evolving regulations and sanctions across different jurisdictions. We recommend staying informed about the latest regulatory updates and exercising due diligence when transacting with any exchange / service provider.

4. How to verify pending deposits

For transactions valued at 1,500 SGD or below, you will need to provide the Sender's name and the Wallet / Exchange name. Kindly follow these steps:

  1. Go to Transaction History > Wallet History > Select the pending deposit > Choose Verify sender details
            
  1. Provide the required information:
    1. Choose “Myself” if the transfer was processed by you.
    2. Choose “Someone else” if the transfer was sent by another person.


For transactions exceeding 1,500 SGD, follow the steps above and provide additional details, including:

  1. If the sender is an Individual, provide their Residential address or ID / Passport number.
  2. If the sender is an Entity, provide the Business address or Business registration number.


5. How to verify Recipient's details for withdrawals from Coinhako

Recipient details must be provided when adding a receiving address to the Address Book before initiating a cryptocurrency withdrawal.

Read more about the Address Adding process 👉  HERE 

6. What should I do if my deposit is rejected?

Any transfers to and from other platforms are reviewed based on our internal policies and may be accepted or rejected accordingly. In case your deposit is rejected, you can request a refund. A withdrawal fee will be applied when processing a refund request.

Read more about the Refund process 👉  HERE 

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