Glossary > Travel Rule
The Travel Rule refers to the Financial Action Task Force’s (FATF) recommendation 16 from the 2019 updated guidance.
This rule requires virtual asset service providers (VASPs) to share identity details and know-your-customer (KYC) data between them. This exchange of information must take place before transacting together. The goal of travel rules is helping to understand where users send and receive cryptocurrencies.
More simply put, for each transaction, the origin VASP must transfer data about the sender to the destination VASP. And the destination VASP must transfer data about the receiver to the origin VASP.
The FATF assesses progress made by the public and private sectors in the implementation of the Travel Rule every year.
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