Overview
The Travel Rule is a regulatory requirement that applies to Virtual Asset Service Providers (VASPs) and Money Services Businesses (MSBs) such as cryptocurrency exchanges and wallet providers, when transferring digital assets between platforms.
When you send crypto from Caleb & Brown to another exchange or wallet, or receive crypto from one, we may be required to collect and verify information about the sender or recipient. This is similar to how traditional wire transfers have worked for decades; the same transparency obligations that apply to bank transfers now apply to crypto.
These steps help ensure that your funds reach the right person, safely and securely, every time.
In the United States, the Travel Rule is enforced by FinCEN (the Financial Crimes Enforcement Network) under the Bank Secrecy Act (BSA).
Why the Travel Rule exists
The Travel Rule is a key component of a global effort to make the financial system safer. For cryptocurrency, it aims to increase transparency and traceability for transactions between different exchanges and platforms. By requiring platforms to identify both the sender and the recipient of funds, it becomes harder for bad actors to use digital assets for illicit purposes and easier for law enforcement to investigate when something does go wrong.
How the Travel Rule benefits you
While the additional steps may seem like extra friction, they make crypto safer for everyone. Benefits for Caleb & Brown clients include:
When does the Travel Rule apply?
In the United States, the Travel Rule applies when a transfer of USD $3,000 or more is made between two regulated financial institutions or MSBs. This threshold covers both fiat and virtual asset transfers.
For transfers below $3,000, Caleb & Brown is still required to retain records of the transaction, even though the Travel Rule data-sharing obligations do not apply.
Not affected: Trades within your Caleb & Brown account are not affected.
What does this mean for you?
For transfers that require Travel Rule information, you may be asked to:
Identify the wallet type — whether it is a centralised exchange (e.g. Coinbase, Kraken, Gemini) or a self-hosted wallet (e.g. MetaMask, Phantom).
Confirm whether you own the destination wallet, or whether you are sending to another person.
If you are sending to a centralised exchange, Caleb & Brown will verify the receiving platform as part of our compliance checks. If you are sending to a self-hosted wallet, you may be asked to verify ownership of the wallet.
Important: Ensure the recipient details you provide are accurate to avoid processing delays. |
Please note: You will only need to provide this information once per withdrawal address, not every time you send funds to that address. Some transactions may take slightly longer to process while we complete the required checks. |
To ensure our approach to the Travel Rule adheres to regulations, we use a trusted third-party provider, Notabene. Notabene is a platform for crypto compliance and fraud prevention. You can learn more about how your information is processed within their Privacy Policy.
What changes, and what stays the same
Most of your experience with Caleb & Brown is unchanged. Here is a quick summary of what is new — and what stays exactly as it is.
Frequently asked questions
What is FinCEN?
What is FinCEN?
FinCEN is the Financial Crimes Enforcement Network, a bureau of the US Department of the Treasury. It is the primary regulator responsible for AML/CFT compliance for cryptocurrency businesses operating in the United States.
What is an MSB?
What is an MSB?
MSB stands for Money Services Business, the term FinCEN uses for cryptocurrency exchanges and wallet providers subject to Bank Secrecy Act obligations. This is equivalent to the term "VASP" used in international FATF guidance.
What is the minimum transaction amount?
What is the minimum transaction amount?
USD $3,000. Transfers below this amount are not subject to Travel Rule data-sharing obligations, but records must still be retained.
How long does the Travel Rule check take?
How long does the Travel Rule check take?
For platforms already within our Travel Rule provider's network, checks typically take a matter of seconds. In some cases, additional manual review may be required, which can take longer.
Will I need to provide information every time I withdraw?
Will I need to provide information every time I withdraw?
Once we have collected and verified your wallet information, we can re-use it for future transactions. However, a Travel Rule check will still be performed for each qualifying transfer.
Does this affect deposits into my Caleb & Brown account?
Does this affect deposits into my Caleb & Brown account?
Yes. The Travel Rule also applies when you deposit crypto from an external platform into your Caleb & Brown account, provided the transfer meets the $3,000 threshold. The sending platform has obligations to pass on originator information, and Caleb & Brown has obligations to monitor receipt of that information.
Are there other US regulatory bodies involved in crypto?
Are there other US regulatory bodies involved in crypto?
Yes. While FinCEN handles AML/CFT compliance, crypto activity in the US is also overseen by the SEC (securities), CFTC (commodities), OCC (bank participation), and OFAC (sanctions). Caleb & Brown complies with all applicable US regulatory requirements.
Will my data be safe?
Will my data be safe?
Exchanges must comply with the Privacy Act 1988 (Cth) to ensure your personal information is protected. When exchanges send Travel Rule data to one another, they use encrypted messaging protocols built separate from the blockchain. Your personal data is not disclosed publicly on the blockchain; it is shared point-to-point between regulated businesses.
Still have questions?
Your dedicated broker is here to help you through any part of this.