What is Travel Rule?
The travel rule is a rule that requires the source exchange to notify the destination exchange of details on domestic crypto exchanges. It was established by the FATF (Financial Action Task Force) as a measure against money laundering and terrorist financing.
- From April 1st, 2022, the Travel Rule will be effective for all Japanese cryptocurrency exchanges. Customers depositing certain cryptocurrencies via a Japanese Cryptocurrency exchange will be required to provide additional details on where transactions are going. Reference: Japan Crypto Asset Traders Association (JVCEA)(in Japanese)
- New conditions have been added due to the revision of the Law on Prevention of Transfer of Criminal Proceeds from around June 2023. The target country is the adopted system (TRUST or SYGNA) and money can only be transferred on the same system. Reference: Financial Services Agency, "Publication of the Draft Government Ordinance Partially Amending the Enforcement Order for the Law on Prevention of Transfer of Criminal Proceeds" and "Current Status and Issues of Measures against Money Laundering, Terrorist Financing and Proliferation Finance" (June 2023)(both in Japanese)
Please note that the same remittance methods used before June 2023 may not be available for this revision.
Recommended Methods of Crypto Deposit and Withdrawal
To ensure smooth deposits and withdrawals, we recommend using the following two wallets.
- Via a private wallet (e.g. Metamask, Exodus, or Trezor)
- Via an international exchange wallet (e.g. Bybit)
Find out more about holding crypto currency here.
Game Changers EP 4 - Where do I hold my crypto?
If you wish to deposit or withdraw funds via an overseas exchange, please check the policies and regulations of the crypto exchange you have been using before.