What is the Travel Rule?

The Travel Rule, officially known as Recommendation 16 of the Financial Action Task Force (FATF), is a global standard that applies to Virtual Asset Service Providers (VASPs). It states that when users transfer digital assets above a certain threshold between Virtual Asset Service Providers, information about both the sender and the recipient must be collected and exchanged.

This includes:

The sender's name and wallet address.

The recipient's name and wallet address.

Account numbers or unique transaction identifiers.

As a result, when users attempt to send funds from Binance to another Virtual Asset Service Provider that also complies with the Travel Rule, the platform must verify the recipient's address — which often requires manual steps, delays, or address verification.

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