# Travel Rule

> A regulation that requires crypto firms to share sender and recipient information when transferring above a threshold.

Canonical URL: https://fudfomo.co/glossary/travel-rule
Source: What The Block! Dictionary v1.0 (last updated 2026-04-25), browsable at https://wtb.fudfomo.co.

## Definition

The Travel Rule is a financial crime rule first written for traditional bank transfers, now extended to crypto. When a crypto firm sends value above a set threshold to another firm, it has to pass along basic information about both the sender and the recipient.

The aim is to make it harder to use crypto rails to launder money or move sanctioned funds. The rule is set globally by the Financial Action Task Force and implemented locally by national regulators.

## Regulatory context

Thresholds and exact data requirements differ by jurisdiction. Most major exchanges integrate Travel Rule providers that share data automatically.

## Related terms

- [AML](https://fudfomo.co/glossary/aml): Anti-money laundering. The rules and checks that stop crypto being used to hide the origin of dirty money.
- [KYC](https://fudfomo.co/glossary/kyc): Know Your Customer. The identity checks an exchange runs before letting you trade.
- [FATF](https://fudfomo.co/glossary/fatf): The Financial Action Task Force. The global standard-setter for anti-money-laundering and counter-terrorist-financing rules.
- [VASP](https://fudfomo.co/glossary/vasp): Virtual Asset Service Provider. A FATF term for any business that handles crypto on behalf of customers.

## See the full catalogue

What The Block! covers more than 2,000 plain-English crypto terms, delivered as embeddable hover-state tooltips for crypto exchanges. https://wtb.fudfomo.co