Crypto Travel Rule

Overview

The Crypto Travel Rule is a global regulatory requirement that obliges Virtual Asset Service Providers (VASPs) to exchange sender and recipient information for cryptocurrency transfers.

This article explains how the Crypto Travel Rule is implemented and handled on Crassula’s side, focusing on system behavior and user experience. It does not cover technical integration details.

When a crypto transaction falls under Travel Rule requirements, Crassula gathers the necessary data about the sender and the beneficiary and submits it for compliance checks. Based on the verification outcome, the transaction can proceed automatically, be placed on hold for review, or be rejected.

This process applies to both outbound and inbound crypto transfers where regulatory data exchange is required.

Compliance objective

The objective of the Crypto Travel Rule implementation in Crassula is to ensure compliance with applicable regulations by validating sender and recipient information before a transaction is executed or credited.

Crassula relies on Sumsub to perform automated checks and decision-making, reducing manual intervention while maintaining regulatory alignment.

Wallet address book

The Wallet address book is a secure registry of crypto wallet addresses associated with platform users.

As soon as Crypto Travel Rule functionality is enabled, all existing and newly created users’ wallets are sent to the Travel Rule provider (Sumsub). This allows the system to automatically recognize wallet ownership during Travel Rule checks and reduce unnecessary user actions.

Transactions covered by the Crypto Travel Rule

In Crassula, the Crypto Travel Rule applies to outgoing and incoming cryptocurrency transfers to and from external wallets.

Required information under the Crypto Travel Rule

The set of data required for Crypto Travel Rule compliance depends on the transaction amount and applicable regulatory thresholds.

Transfers below 1,000 USD / EUR

For virtual asset transfers below the 1,000 USD / EUR threshold, regulatory guidance recommends collecting the following information:

• the name of the sender;

• the name of the beneficiary (recipient);

• the wallet address of each party, or a unique transaction reference number.

Transfers at or above 1,000 USD / EUR

For transfers exceeding the threshold, additional information is required, including:

• the sender’s name;

• the sender’s account identifier used for the transaction (a wallet address);

• the sender’s physical address, national identity number, customer identification number, or date and place of birth;

• the sender’s name;

• the sender’s account identifier (for example, a wallet address).

Crassula collects and submits this information to Sumsub as part of the automated compliance flow.

Inbound crypto transactions

Inbound Travel Rule ensures that every incoming crypto transfer is checked for regulatory compliance before it is credited to the beneficiary.

What happens when an incoming transaction is received

1. The system checks whether Travel Rule verification is required.

2. The system checks if the information about the transaction is received from Sumsub. This case is valid when the originator also uses the Sumsub Travel Rule.

3. If the transaction is already known and compliant, it is credited automatically.

4. If not, such a transaction is sent to Sumsub for verification.

Possible inbound transaction outcomes

Approved

• All compliance checks pass.

• Funds are credited to the end-user.

• The end-user can see such transactions as completed.

Pending

• Additional compliance review is required.

• Funds are temporarily held.

• After review, such a transaction can be approved or rejected.

Rejected

• Compliance requirements are not met.

• Funds are frozen and automatically sent to the suspense account for future investigation.

• End-user is not credited.

Outbound crypto transactions

How outbound checks work

Outbound Travel Rule ensures that every outgoing crypto transfer to an external wallet is checked for regulatory compliance before it is executed on the blockchain.

Outbound crypto transfers are automatically screened based on the rules set up on Crassula. Additional verification may be required depending on the destination wallet type. Most outbound transactions do not require user action.

What happens when an outgoing transaction is initiated

1. The system checks whether Travel Rule verification is required.

2. The system collects the required information for Travel Rule.

3. The system submits the case for compliance screening: Sends sender and recipient data to Sumsub and waits for the compliance decision.

4. The system applies the decision.

Transfers to self-hosted (unhosted) wallets

For unhosted wallets (self-custody addresses), the platform treats the recipient as “external” and runs Travel Rule screening via Sumsub before allowing the transfer to proceed.

User experience

1. User submits a transfer.

2. The system requests wallet verification.

3. User receives an email with instructions.

4. Verification is completed via a secure flow.

5. The transaction proceeds once confirmed.

Possible outbound transaction outcomes (unhosted wallets)

Approved

• All Travel Rule checks pass and the transfer is allowed to proceed.

• The transaction is executed on the blockchain.

• The end-user sees the transfer as completed.

Pending

• The transaction is flagged for additional compliance review.

• The transfer is temporarily not executed.

• After review, such a transaction can be approved or rejected.

Rejected

• Compliance requirements are not met.

• The end-user can see this transfer as declined.

Crypto Travel Rule processing in Crassula

When a user initiates an outgoing crypto transfer that falls under the Travel Rule, Crassula follows the following steps:

1. Transaction initiation: The user submits a crypto transfer request.

2. Travel Rule check: Crassula determines that the transfer requires Travel Rule compliance and sends the required sender and recipient information to Sumsub.

3. Compliance decision: Sumsub evaluates the data and returns one of the following decisions:

   • Approved: The transfer meets Travel Rule requirements.

   • Rejected: The transfer does not meet compliance requirements.

   • On hold: Additional checks or manual review are required.

4. Transaction outcome: Crassula executes, blocks, or pauses the transfer based on the decision received.

Transactions that are placed On hold must be manually reviewed and approved or rejected by an administrator via the Administrative Panel.

How to enable Crypto Travel Rule

Crypto Travel Rule is not enabled by default. To use this feature, the following is required:

• Sumsub integration: Have an active integration with Sumsub. The Registration form and VASP Due Diligence (DD) form must be completed to enable data exchange.

• Fireblocks integration: Have active Fireblocks accounts with a positive balance in USDT.b and TON to ensure that crypto transfers subject to Travel Rule checks can be processed and settled correctly.

• System configs: Enable the Crypto Travel Rule configuration in Crassula.

• Thresholds configured: Configure applicable rules and thresholds together with the Crassula team.

To enable Crypto Travel Rule for your platform, contact your Crassula account manager or customer support team.

Processing examples

Example 1: Approved transfer

A user sends cryptocurrency to an external wallet owned by another VASP.

• Crassula submits the required Travel Rule data to Sumsub.

• Sumsub validates the sender and recipient information.

• The transaction is approved.

• Crassula executes the transfer.

Example 2: Transfer on hold

A user receives cryptocurrency from an external wallet, but the sender’s data cannot be fully verified.

• Sumsub places the transaction on hold.

• The transfer is paused in Crassula.

• An administrator reviews the transaction and either approves or rejects it.

Example 3: Transfer rejected

A user sends cryptocurrency to an external wallet, but the Travel Rule check fails.

This may happen if:

• Required sender or recipient data is missing.

• The provided information does not match the counterparty data.

• The counterparty VASP does not respond or rejects the data exchange.

In this case:

• Sumsub rejects the transaction.

• Crassula blocks the transfer.

• The transaction is not executed and cannot proceed further.