What Is the Travel Rule?
The Travel Rule is an international financial regulation that requires payment service providers and cryptocurrency exchanges to collect and share certain information when transferring funds between institutions.
Originally designed for traditional bank wire transfers, the Travel Rule has been extended to cover cryptocurrency transactions across most major jurisdictions — including the European Union, the United Kingdom, the United States, and many others.
In the EU, the Travel Rule for crypto assets came into full effect on 30 December 2024 under the Transfer of Funds Regulation (EU) 2023/1113, which works alongside the MiCA (Markets in Crypto-Assets) framework. As an EU-regulated crypto exchange, Paybis is required to comply with these obligations on every transaction.
What Does It Mean in Practice?
When you send or receive cryptocurrency through Paybis, we are legally required to:
- Identify you as the sender or recipient — confirming your name, account details, and in some cases your address or national identifier.
- Record information about the counterparty — the person or entity on the other side of the transaction.
- Transmit this information to the receiving institution (another exchange or wallet provider) when the transfer crosses a regulated threshold.
- Request additional verification in specific scenarios — for example, when you send funds to or receive funds from a wallet not held at a regulated exchange (known as an unhosted or self-custodied wallet).
Think of it as the crypto equivalent of the information your bank collects when you make an international wire transfer.
When Will I Be Asked for Additional Information?
You may encounter an additional verification step in the following situations:
1. Transfers to or from an external wallet you own
If you withdraw crypto to a personal wallet (such as a hardware wallet or a software wallet like MetaMask), we may ask you to confirm that you own that wallet address. This is called proof of wallet ownership or unhosted wallet verification.
Common ways to confirm ownership include:
- Signing a small test transaction from the wallet
- Sending a micro-amount from the wallet to confirm control
- Completing a short form through our verification partner (Sumsub)
2. Transfers above certain value thresholds
For higher-value transactions, we are required to collect and transmit full originator and beneficiary details — including your verified name and wallet address — to the institution receiving the funds.
3. Transfers to or from another exchange
When you send crypto to another regulated exchange, we must pass your verified information to that exchange, and vice versa. Both platforms are obligated to perform this exchange under the Travel Rule.
4. Source of Funds verification
For significant transactions, we may also ask you to explain and document where the funds originated — for example, from employment income, investment returns, or asset sales. This is required independently of the Travel Rule but is part of the same regulatory framework.
Why Does Paybis Need This Information?
We understand that additional verification steps can feel like friction. Here is why they matter:
| Reason | What it means for you |
|---|---|
| Legal obligation | Paybis operates under an EU licence. Non-compliance would risk our ability to serve you at all. |
| Fraud prevention | Travel Rule checks help detect stolen funds and protect all customers — including you. |
| Anti-money laundering (AML) | The regulation is designed to prevent crypto from being used to move illicit funds across borders. |
| Your account integrity | Completing these checks protects your account from being flagged or restricted by counterparty institutions. |
Crypto exchanges that skip these checks are typically operating outside regulated frameworks — which creates risk for their users. Our commitment to compliance is part of how we keep Paybis safe and sustainable for everyone.
Is My Data Safe?
Yes. Any information you provide is handled in accordance with:
- The EU General Data Protection Regulation (GDPR)
- Paybis's Privacy Policy
- Strict data retention and access controls
Your information is shared only with the regulated institution on the receiving end of your transaction, and only to the extent required by law. It is not sold, used for marketing, or shared with any unrelated third parties.
What Happens If I Don't Complete the Verification?
If a required Travel Rule check cannot be completed, we may be unable to process your transaction. In some cases, a transfer may be held pending while we await the necessary information.
We will always notify you clearly if a step is required, what we need, and how to complete it. Our Support team is available to guide you through the process.
Frequently Asked Questions
Does this apply to every transaction?
Not always. The level of information required depends on the transaction size, destination, and type of wallet involved. Smaller transactions between verified Paybis accounts may require minimal or no additional steps.
Why do I need to prove I own my own wallet?
Regulations require us to confirm that funds are not being sent to an unknown or sanctioned party. Verifying wallet ownership ensures the destination address belongs to you and not a third party. This is a standard requirement across all regulated European crypto exchanges.
My wallet doesn't support message signing. What can I do?
If your wallet does not support transaction signing, there are alternative methods available. Please contact our Support team and we will walk you through the options specific to your wallet type.
Will this slow down my transaction?
In most cases, verification takes only a few minutes. If you have already completed identity verification with Paybis and are using a known wallet address, the process may be fully automatic. Additional checks are only triggered when new information is required.
Why is the other exchange asking me for my information — I thought I gave it to Paybis?
The Travel Rule requires each institution to independently verify and hold records. The receiving exchange may have its own onboarding or verification process, separate from ours. This is expected and normal.
I've used Paybis for years. Why is this happening now?
The EU's Travel Rule for crypto came into full effect in December 2024. Even long-standing customers may now encounter these checks for the first time, particularly for transaction types or wallet destinations that trigger new regulatory requirements.
Need Help?
If you receive a verification request you don't understand, or your transaction is on hold, our Support team is here to help via email or chat.
📧 Email: support@paybis.com
💬 Live Chat: Available at paybis.com