What is the Travel Rule and why is it important to FINXFLO?
This regulatory rule protects your exclusive ownership and access to crypto assets while curbing illegal practices.
Global financial regulators introduced the Travel Rule in mid-2019 as an anti-money laundering / counter-financing terrorism (AML/CFT) measure. This Rule applies to Virtual Assets Service Providers (VASPs) across the industry and came into enforcement in Singapore in January 2020.
This means a trader trying to send / receive crypto to / from another trading platform (or exchange) is required to share identifying KYC-information about both sender and recipient with the beneficiary platform in a secure, transparent, and instantaneous process.
To be Travel Rule compliant, users are required to whitelist their private wallets. It is a stringent move, but it gives regulatory bodies confidence in our process.
How does this affect FINXFLO users?
The interests of our users come first. Prior to withdrawing crypto from FINXFLO, users need to verify and whitelist the private wallet addresses that meet the regulatory requirements of The Travel Rule. Withdrawals to unverified addresses and non-compliant platforms will be restricted.
To ensure that we meet the requirements of regulatory bodies such as the Monetary Authority of Singapore on the Travel Rule, we chose to deploy the most secure test in the crypto industry called ‘The Satoshi Test’.
What is the Satoshi Test?
The Satoshi Test is a method to prove ownership of a verified wallet. Users will need to send a small amount of crypto (as little as 0.01 USD or its equivalent) from their external wallet to their FINXFLO account wallets to verify that they are owners of that wallet.
It is an extra step to execute to facilitate crypto withdrawals, but it goes a long way to protect your digital assets.
To learn how to whitelist your wallets, watch our tutorial here.