How does the Travel Rule affect crypto transfers? – Coins.ph Help Center

The Bangko Sentral ng Pilipinas (BSP) has released Circular 1108 series of 2021 impacting how Virtual Asset Service Providers (VASPs) handle cryptocurrency transactions. This guideline, established by the Financial Action Task Force (FATF), aims to enhance transparency and prevent illicit activities in the crypto space.

What is a VASP?

According to Circular 1108, a Virtual Asset Service Provider (VASP) refers to any entity that offers services or engages in activities that provide facility for the transfer or exchange of VA (Virtual Assets), which involve the conduct of one or more of the following activities:

Exchange between VAs and FIAT currencies;
Exchange between one or more forms of VAs;
Transfer of VAs; and
Safekeeping and/or administration of VAs or instruments enabling control over VAs

Clarification on the Applicability and Implementation of the Travel Rule

As of December 2023, BSP has released Memorandum M-2023-042 which aims to expand Circular 1108 and to clarify the applicability on Virtual Assets transaction thresholds, among others, in line with their "objective to improve the country's overall risk management,... particularly on the Travel Rule requirement for VASPs."

How does the travel rule affect me?

As a registered VASP, Coins.ph must collect required information to be able to process VA transfers, including transactions associated with a VA transfer. You may refer to the "Transactional Requirements for VASPs" section in Memorandum M-2023-042 for more updated information.

Given this requirement, Coins.ph customers must now provide the following information for the successful processing of their cryptocurrency transfers, depending on the transaction amount:

Sending cryptocurrencies to external wallets

if <=> P50,000

Recipient’s name
Recipient's wallet address

Receiving cryptocurrencies from external wallets

if transaction < P50,000

Sender’s name
Sender’s wallet address

Receiving cryptocurrencies from external wallets

if transaction ≥ P50,000

Sender’s name
Sender’s wallet address
Source exchange platform
Sender's Address

Kindly ensure details provided are correct and factual, as incorrect and/or fictitious details can lead to your transactions being rejected upon verification. This would also be the case for Names, Platforms and Addresses provided which may be connected to illicit activities, which are strictly prohibited.

Travel Rule - Send Crypto New.jpeg

Would my recipient receive all my details/information as well?

No, the information that will be provided for these transactions will be treated as confidential and in compliance with data privacy standards.

Can I save the information for future use?

Yes. For your convenience, an Address Whitelist feature is available for you to use under your Account Settings. This allows you to save recipient information in an Address Book for your recurring transactions. Learn more here on how to use Address Whitelist under Settings.

Best Practices for Users

Maintain accurate personal information
Prepare required details before transactions
Understand platform-specific requirements
Stay informed about regulatory changes