Overview of the Crypto Travel Rule

The Travel Rule (TR) requires all financial institutions to pass on customer and beneficiary information to the next financial institution in certain funds transmittals. Its core purpose is to block financial crime.

This regulatory measure, which has been applied to traditional financial institutions for over twenty years, was extended in 2019 to Virtual Asset Service Providers (VASPs). VASPs are businesses that offer the following services:

• Exchange between virtual assets and fiat currencies
• Exchange between one or more forms of virtual assets
• Sale and purchase of crypto assets
• Custody of crypto assets
• Issuance and sale of tokens

The Crypto Travel Rule requires VASPs to share (disclose) relevant beneficiary and originator know-your-customer (KYC) information when completing a cryptocurrency withdrawal or deposit over a particular threshold. In essence, if a customer with a VASP A account sends virtual assets above a given value to a customer of VASP B, then both VASPs must collect and hold a defined set of information about each customer participating in the transaction. The originating VASP must send the information to the receiving VASP, who sends back a confirmation.

The spirit of the Rule is to prevent money laundering and terrorist financing, which results in a safer crypto space. The Rule was released by the Financial Action Task Force (FATF), an inter-governmental body of member countries and regions that focuses on establishing international standards for combating financial crime.

Juno asks you to comply with the Crypto Travel Rule (TR) when sending or receiving MXNB tokens from non-Juno accounts in amounts greater than or equal to 1,000 euros (or equivalent in cryptocurrency).