Travel Rule at Coinmate: How to Verify Cryptocurrency Transfers Step by Step

In October, we’re launching the next phase of implementing the so-called Travel Rule, an international standard designed to increase the security of cryptocurrency transfers.
What does this mean for you?
Above all, greater assurance that your transactions are processed in line with the rules required by regulators around the world.

As of December 30, 2024, the European regulation known as the Travel Rule has come into effect.
This legislation requires all crypto service providers (CASP/VASP) to transmit basic information about the sender and recipient during each transfer.

At Coinmate, we’ve simplified this process so that you — our customers — have as little work as possible.

What is the Travel Rule?

It’s an obligation for crypto service providers (VASP/CASP) to share basic details about the sender and recipient when depositing or withdrawing cryptocurrencies.
The goal is greater transparency and the prevention of misuse of digital assets for illegal activities.

On Coinmate, this means that when you make a withdrawal, you’ll need to fill in, for example the recipient’s name or entity and the type of wallet (custodial / non-custodial).

Why is this changing?

As a company applying for registration with the Czech National Bank (ČNB), we are required to implement the Travel Rule.
It’s part of both European and global anti-money-laundering (AML) regulations.Our goal is to remain a secure and transparent partner who protects your data, while keeping things simple and easy to use.

How does it work in practice?

We’re starting as simply as possible: for now, all you need to do for approval is tick a declaration of truth.
We’ll continue refining the process to stay compliant with regulation, without making everyday use any more complicated than necessary.

Address Verification for Deposits and Withdrawals via API

If you use the API to send or receive digital assets, all addresses must be verified manually on the platform first.

Only after verification can they be used through the API.

If you don’t verify an address beforehand:

• API withdrawals to an unverified address will fail — the system will automatically block them.
  
• API deposits from unverified addresses will remain pending — until you confirm the address manually.
  

We recommend verifying every new address before using it via the API for the first time.
It ensures smooth operation and prevents unnecessary delays.