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 Virtual Asset Service Providers (VASPs) and the cryptocurrency industry at large.

How does the Travel Rule work?

Whenever a user of one exchange sends/receives cryptocurrency, the originating exchange must share identifying information about both sender and recipient with the beneficiary exchange in an “immediate and secure” manner.

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: 

  • Users who wish to send crypto out of their Coinhako wallet will only be able to send them to platforms that have adopted Travel Rule measures. 

  • Users will have to verify their personal (non-custodial) addresses before sending or receiving crypto. 

  • Users who wish to make crypto deposits (“Receive”) from non-Travel-Rule-compliant platforms will be required to provide supplementary information

    • For transactions worth $1500 or below, users will have to provide the name of the VASP/exchange and their full name

    • For transactions worth more than $1500, users will have to provide the name of the VASP/exchange, their full name, date of birth and nationality

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. How do I know if the VASP/exchange I want to send crypto to is Travel Rule compliant?


Before you send any crypto, you are strongly encouraged to check with the respective VASP/exchange about their Travel Rule measures. 


On the sending page, you will be prompted about the address origin before you send crypto. 



The VASPs/exchanges listed after you select ‘Exchange with Travel Rule supported’ are the ones that are Travel Rule compliant. There are currently 6 VASPs/exchanges: 


  • Crypto.com

  • FTX

  • Digifinex

  • Huobi Global

  • Phemex



While we understand that some of these changes might take time to get used to and do not wish to inconvenience you, these measures are necessary to ensure the continuity of our services for you.

 

 4. Personal Wallet (Non-custodial) Verification

What are non-custodial wallets?


Non-custodial wallets are wallets where users self-manage their private keys. This differs from an exchange or trading platform, like Coinhako, where the platform is in charge of managing the custody and security of your funds.


What can I use to verify my personal (non-custodial) wallet?


There are currently two methods of verification: the Satoshi Test and the Signature Method. 


What is the Satoshi Test?


The Satoshi Test is a method that allows Coinhako to verify that you are in direct and complete control of a wallet address. 


To verify that you have control of a wallet, Coinhako requests you to send a small, specific amount of crypto (usually a small amount) to your Coinhako wallet. The address is verified after these tokens have been received from your wallet into your Coinhako account.


Read more about the Satoshi Test 👉  HERE 


Why do I need to verify my wallet address?


As part of our efforts to align with both local and global requirements, we require Coinhako Singapore users to verify their personal (non-custodial) wallet addresses. This helps provide a safe and accountable platform for all.

What’s the difference between verifying with the Satoshi Test and Wallet Signature method?


While the Satoshi Test requires you to send a small sum of crypto to verify your personal address, the Signature method simply requires you to sign a message to prove ownership of your wallet.



👉Learn more about verifying with the Satoshi Test HERE
👉Learn more about verifying with the Signature Method HERE



Will I still need to do verification for my personal wallet if the address is already verified on my address book?


Yes, you will, as addresses on the address book are only verified via email, and additional verification is required due to regulatory updates surrounding the Travel Rule. 


How do I know if my personal wallet address has been verified?


You will receive an email informing you that your wallet address has been verified.



5. Crypto Transactions on Coinhako

Crypto Withdrawals - “Send”

How do I send crypto to my personal wallet?  

In alignment with the Travel Rule, Coinhako users can only send crypto to verified addresses. Please try another recipient address that has already been verified or proceed to verify your address. 

To verify your address, you will need to log in to the Coinhako app and complete an address verification, either via Satoshi Test or Wallet Signature method.


Can I still send and receive crypto from other platforms? 

Following the implementation of the Travel Rule, Coinhako Singapore users can only send crypto to VASPs that are Travel Rule compliant. 

I want to send tokens to my friend’s wallet. Do I need to verify their address?


The sending of tokens from your Coinhako wallet will be restricted to Travel Rule compliant exchanges and verified personal wallets — these restrictions will not apply to personal wallets.


Crypto Deposits - “Receive”

Will I still be able receive crypto from non-Travel Rule compliant VASPs?

Yes, we will continue to process incoming deposits from these platforms — however, you will be required to provide supplementary information before the transaction is processed. 

Kindly note that such transactions will be subject to compliance checks, and the transaction may not be processed if the information provided is found to be ambiguous.

Will I still be able to receive crypto from an unverified personal wallet (non-custodial)?

Deposits will be restricted to verified wallets only.  

Figured it out? Start Trading Now!




    • Related Articles

    • How Do I Send Crypto using Sygna Hub?

      What is Sygna Hub? It is a Travel Rule compliance solution that helps virtual asset service providers (VASPs) share privacy-secure and accurate transmittal data with each other. How do I send crypto using the Sygna Hub protocol? Please make sure that ...
    • How Do I Connect My Wallet on Coinhako?

      In line with Coinhako’s newly implementedTravel Rule measures, Coinhako Singapore users will have to verify their personal (non-custodial) wallets by proving ownership of their addresses. In this article, you will learn how to connect your wallet to ...
    • How Do I Process A Refund For My Crypto Deposit?

      When will I need to request a refund? You may be required to request a refund in the following situations:  Inaccurate declaration of the sender’s origin If the origin of the address you are sending crypto from is inaccurate, the crypto deposit to ...