Travel Rule (Transfer of Funds Regulation)

As with a bank transfer, details of the sender and recipient ‘travel’ with the money. In the EU, this is governed by the Transfer of Funds Regulation (EU) 2023/1113, which has applied to crypto-assets since 30 December 2024; guidelines from the European Banking Authority (EBA) set out the details.^[1],[2]

What the rule requires

• Between two providers: if you send bitcoin from one exchange to another, the providers pass on both parties’ names and account or wallet address details, and for the sender also details such as postal address or date of birth. There is no minimum threshold.^[1],[2]
• From or to your own wallet: above €1,000, the provider must check whether the address belongs to you or is controlled by you. What counts is the value in euros at the time of the transfer.^[2]

How to prove the address is yours

There are two common methods, both also named by the EBA. You sign a given message with your wallet – the private key never leaves the device. Or you send a set tiny amount from the address to the provider (a ‘satoshi test’).^[2] Not every wallet can sign messages; in that case, the satoshi test is still an option. The provider can record a verified address (whitelistGlossaryWhitelist (address book)A list of withdrawal addresses that you have stored and confirmed with your provider in advance. When it’s active, withdrawals can only go to these addresses – effective protection if someone breaks into your account.On the learning path: Stage 5 · Step 4 – First withdrawal →In the glossary →×) and then usually doesn’t have to check it again.

What this means for you

The check is normal, and self-custody remains permitted. Ideally, have your address verified before your first larger withdrawal rather than under time pressure. Your first withdrawal to your own wallet walks you through it.