Our goal at Venga is to ensure transparency, security, and full regulatory compliance for all transactions. This FAQ explains the Travel Rule, its impact on your transactions, and how Venga implements the necessary measures.
What is the Travel Rule?
The Travel Rule is a regulatory framework that requires Virtual Asset Service Providers (VASPs), such as Venga, to include and exchange specific identifying information when transferring digital assets. This requirement helps prevent money laundering, terrorist financing, and other illicit activities by ensuring traceability throughout the transaction process.
The EU Transfer of Funds Regulation (2023/1113) complements the rules on anti-money laundering and is mandatory for all VASPs operating in the European Union. Similar rulings apply for the majority of international jurisdictions, after the requirements of the Financial Action Task Force (Recommendation 16).
How does the Travel Rule affect your transactions?
The Travel Rule means that we will need to collect and share some data related to your crypto transactions. If you are transferring crypto from your self-hosted wallet, we will need to get the information on the wallet ownership, i.e., a proof that you control the wallet. A step-by-step is provided below.
Who Must Comply with the Travel Rule?
All VASPs—including exchanges, wallet providers, and other crypto service platforms—must comply with the Travel Rule when conducting transfers between separate entities that exceed certain thresholds. The rule is mandatory for a vast number of jurisdictions, in and out of the EU. Therefore,other regulated VASPs shall also collect and share such data with us, ensuring that the parties involved in a crypto transaction are identified.
Internal transfers within the same institution may be subject to different protocols based on local regulations and internal procedures.
What Information Must Be Transmitted?
For each applicable transaction, the following details are generally required:
- Sender Details: Full name, account identifier, and, when necessary, additional verification information.
- Recipient Details: Full name, account identifier, and relevant contact or identification information.
- Supplementary Data: Depending on jurisdictional requirements, extra details may be required to meet local anti-money laundering (AML) standards.
This data accompanies the transaction to ensure that both parties can be properly identified and the transaction meets regulatory compliance.
Which information should I share?
When You Transfer Crypto-Assets
When you initiate a withdrawal from your Venga account to an external wallet (whether non-custodial or another cryptocurrency exchange), you will be required to provide supplementary information. This may include:
- Name of the Beneficiary: Information identifying the recipient (the person who will receive the transfer).
- Wallet Type: Indication of whether the wallet is custodial or non-custodial (self-hosted or third-party self-hosted).
- Beneficiary Service Provider (if applicable): The name of the beneficiary’s crypto-asset service provider.
Once you confirm the withdrawal, Venga will securely transmit your name along with the beneficiary’s name to the corresponding service provider when applicable. Additional details may be required when sending to a non-custodial wallet). Once the provided information is verified, subsequent transfers to that same wallet address may not require repeated data submission, provided the information remains current.
When You Receive Crypto-Assets
When receiving a crypto-asset deposit from an external source (such as a non-custodial wallet or another cryptocurrency exchange), you must declare certain details of the originating party. This includes:
- Name of the Originator: Details to identify who initiated the transfer (the person transferring funds to your wallet).
- Wallet Type: Whether the sending wallet is custodial or non-custodial (self-hosted or third-party self-hosted).
- Originating Service Provider (if applicable): The name of the crypto-asset service provider from which the assets were sent, .
If the required information is not provided, the received amount will not be credited.
This process helps ensure that all transfers are fully compliant with regulatory standards and that your transactions remain secure and traceable.
Is There a Transaction Threshold?
Yes. The Travel Rule typically applies to transactions that exceed a specific monetary threshold. This threshold may vary depending on the regulatory jurisdiction. Additionally, the threshold is considered reached not only when a single transaction exceeds the limit but also when multiple smaller transactions, received from the same originator or sent to the same beneficiary, collectively surpass the threshold within a defined timeframe.
Venga continuously monitors these parameters to ensure that our processes remain compliant with all applicable laws.
How Are Privacy and Data Protection Addressed?
At Venga, protecting your data is paramount. All information exchanged under the Travel Rule is:
- Encrypted: Transmitted using advanced encryption protocols.
- Stored Securely: Retained in compliance with strict data protection regulations.
- Used Exclusively for Compliance: The data is solely for meeting regulatory obligations and is not repurposed for other uses.
This approach guarantees that while we meet legal requirements, your personal information remains safeguarded.
How Does Venga Ensure Compliance?
Venga has implemented a comprehensive compliance framework that includes:
- Automated Data Collection: Seamlessly capturing and transmitting the required information.
- Continuous Audits: Regular monitoring and audits of our compliance processes.
- Dedicated Compliance Team: Experts who oversee and update our practices in line with evolving regulations.
Our focus is on delivering secure, efficient transactions while meeting global regulatory standards.
This FAQ aims to provide clear guidance on how the Travel Rule affects your transactions and to reaffirm Venga’s commitment to secure, compliant operations. We continuously review and update our procedures to reflect the latest regulatory developments.