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The Travel Rule: What You Need to Know

  • Updated

What is the Travel Rule?

The Travel Rule is a regulatory requirement where users share basic information for digital asset transfers over $1000 CAD between wallets. In accordance with this responsibility, Bitbuy has implemented an extra step when sending or receiving digital assets as part of our mandate to ensure a secure framework for client investments. 

The overall user experience will not be impacted should the necessary information be provided. Once a transfer over the threshold is detected, Bitbuy may ask if the payment is coming from or going to your personal wallet or a third party’s wallet. Please refer to this section for more information on how to make this distinction.

Should you determine that the other wallet in the transaction is held by a third party, you will be asked to provide the name of the person or organization as well as the physical address of the wallet’s owner. For more information on this requirement, please refer to this section.

How do I know if a wallet is owned by a third party?

A third-party wallet can be defined as a wallet operated and owned by someone other than yourself. In other words, if you are not the recipient in the transaction, you should consider the receiving address as part of a third-party wallet. 

Let’s apply this definition when considering personal accounts held on exchanges like Bitbuy, also referred to as managed or custodial wallets. When sending funds between personal accounts, you are both the sender and the recipient in the transaction. Since a third-party wallet is defined as one operated by another individual, your account (managed or custodial wallet) is considered a personal wallet for these transactions.   

What if I don’t know the third party’s personal information?

It is a requirement for users to include both the name and address of the owner of the wallet to which a withdrawal is being sent or from which a deposit is being received (in the case that it is not themselves). Failure to include this information will result in the transaction being cancelled. If you are unsure about the information requested of you, please contact the wallet owner. In the case of an organization, you may be able to refer to multiple resources for the required details. Examples include the company website, an account manager, or their own support team. 

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