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.

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.

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.

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.