Travel Rule

To understand the purpose of 21 Travel Rule, it helps to clarify what the Travel Rule is. The Travel Rule is a recommendation issued by the Financial Action Task Force (FATF) to address money laundering and terrorist financing. It requires specific personal data to be exchanged with digital asset transactions.

Because the Travel Rule is a recommendation, countries are not required to implement it by a specific date or at all. As a result, adoption and scope vary globally. Implementing jurisdictions may also deviate from the recommendation in the type of information exchanged or when it must be exchanged. Once adopted in a jurisdiction, the Travel Rule becomes law, and failing to exchange this information is illegal. In practice, virtual asset service providers (VASPs), such as exchanges and banks, must collect and store the required customer information.

Collecting, tracking, and storing this information can be complex and error-prone without the right tooling. 21 Travel Rule enables VASP compliance teams to manage and retain the required data for each processed transaction in a consistent, auditable way.