Travel Rule FAQ
In this article:
- What is the Travel Rule
- Are there any changes
- What information needs to be provided when you withdraw from your Nexo account
- What additional information will I need to provide for top-ups subject to the Travel Rule
- Why is my top-up under review
- Nexo Security Protocols
1. What is the Travel Rule
The Travel Rule is a global standard developed by the Financial Action Task Force (FATF) to enhance the security and transparency of cryptocurrency transactions. It requires in some cases Virtual Asset Service Providers (VASPs) to exchange basic information during crypto transactions. Its purpose is to enhance transparency and help combat illicit activities while aligning cryptocurrency practices with traditional finance regulations.
To support this, Nexo collaborates with leading Travel Rule partners, including the renowned Notabene. By leveraging Notabene’s advanced technology, Nexo ensures compliance while keeping your security and privacy at the forefront.
2. Are there any changes
In some cases, you might be asked to provide additional information when making crypto top-ups or withdrawals. This could involve confirming whether the wallet is self-custodial and verifying ownership.
3. What information needs to be provided when you withdraw from your Nexo account
Withdrawal to another digital asset exchange
You will be requested to specify whether the transfer is going to a private wallet or a digital asset exchange account.
Next, you must specify if the recipient wallet belongs to an individual or a company.
In certain cases, additional information, such as the recipient’s country, city, and physical address, may also be necessary.
This is all part of ensuring compliance with the Travel Rule and maintaining the security and transparency of Nexo’s platform.
Withdrawal to a private wallet
You will be requested to specify whether the non-custodial wallet belongs to you or a third party.
If the wallet is third-party-owned, you will need to provide additional details about the recipient and their wallet. This includes basic information like the recipient’s full legal name.
Next, you must specify if the recipient wallet belongs to an individual or a company.
In certain cases, additional information, such as the recipient’s country, city, and physical address, may also be necessary.
This is all part of ensuring compliance with the Travel Rule and maintaining the security and transparency of Nexo’s platform.
What happens if the withdrawal is rejected due to the Travel Rule?
If you fail to provide the required information for Travel Rule compliance, your withdrawal may be unsuccessful. Your assets will not be transferred, and you’ll be notified via email of the failed attempt. You must initiate the withdrawal once again, ensuring all the required data is correctly filled in.
4. What additional information will I need to provide for top-ups subject to the Travel Rule
When receiving incoming transfers, you will be requested to specify whether you are receiving the transfer from a private wallet or digital asset exchange account and supply the full legal name of the sender if it does not belong to you.
Additional information may be requested in order to meet the applicable compliance standards such as the sender’s full legal name and, in certain cases, details such as the sender’s country, city, and physical address.
Security is at the heart of everything Nexo does. Nexo is unwavering in Nexo’s commitment to safeguarding your data through rigorous standards, advanced security protocols, and protection measures. By partnering with trusted solutions and attaining top-tier certification, Nexo ensures Nexo’s -and-tested measures deliver the utmost protection.
5. Why is my top-up under review
On some occasions, crypto top-ups may not be processed until additional information is provided to meet applicable compliance standards. This may include the sender’s full legal name, and in certain cases, their country, city, and full physical address.
In these cases, users can follow the on-screen prompt to confirm the required details directly within the platform.
6. Nexo Security Protocols
Security is at the heart of everything Nexo does. Nexo is unwavering in Nexo’s commitment to safeguarding your data through rigorous standards, advanced security protocols, and protection measures. By partnering with trusted solutions and attaining top-tier certification, Nexo ensures Nexo’s -and-tested measures deliver the utmost protection.