How Does Paxful’s Travel Rule Affect Me?

Modified on Thu, 17 Aug 2023 at 02:42 PM

To comply with international regulations, we require users to provide more information when trading 1,000 USD+ in cryptocurrency.

To keep you in the loop, we implemented the new travel rule for user protection and to stay up-to-date with international standards.

Why was the Travel Rule created, and where will my information go?

The Travel Rule was created to better understand where users are sending and receiving cryptocurrency.

The Financial Action Task Force (FATF)FINCEN, and other international regulatory bodies created the Travel Rule to help make your transactions more secure.

By providing further information (as listed below), there’s less risk of sending crypto to an unknown wallet address. Furthermore, it helps companies, like Paxful, better detect money laundering and terrorist financing.

The rule requires money service businesses to communicate when users send money from one financial institution to another. There are businesses, such as Paxful, that are called Virtual Asset Service Providers (VASPs), and they allow users to trade cryptocurrency. The new Travel Rule requires VASPs to securely gather specific information when a transaction is made between two VASPs. The gathered information is then communicated back and forth between the VASPs.

For further information, visit Paxful’s blog article, Introducing the Travel Rule.

Who needs to follow the new travel rule? 

Anyone who is sending out 1,000 or more USD in cryptocurrency on Paxful to another platform will need to abide by the new travel rule and provide the appropriate information. 

Note: If you are sending 1,000 or more USD in cryptocurrency to another Paxful user within Paxful, the Travel Rule will not apply.

How do I follow the Travel Rule?

A pop-up window will appear on your screen when you confirm the amount of cryptocurrency you would like to send. Keep in mind that this window will only pop up if you are sending 1,000 USD or more in cryptocurrency. 

What information is needed to send over $1,000 in cryptocurrency on Paxful? 

You need to ensure that you’re proof of address (POA) has been verified, meaning that the address associated with your Paxful account has been verified.

You will also need to submit the following recipient details on a pop-up screen when it is presented to you:

When sending to a private person, Paxful requires their information, which includes:

  • The recipient's first name
  • The recipient's surname or last name
  • The recipient’s wallet provider

Note: The wallet provider is the service that your recipient is using to accept the sent funds.

You can also submit a custom wallet provider name by choosing the option: Other. You will then be prompted to type in the custom provider name. 

When sending to a company or corporation, Paxful requires their information, which includes:

  • The company name
  • The company’s wallet provider 

Note: Similar to sending to a private person, you can also submit a custom wallet provider name by choosing the option: Other. You will then be prompted to type in the custom provider name

Once you submit your information and click the blue button.

How do I verify my address for the Travel Rule?

You will need to verify your email address, phone number, address, and identity in order to comply with Paxful standards and the Travel Rule when sending out 1,000 USD or more in cryptocurrency.  Please visit our Help Center page on verifying your account for additional help.

If you need any assistance from our Support team, do not hesitate to contact us. Check out this article on How to Contact Support.