Travel Rule FAQ

What is the Travel Rule?

The Travel Rule is a regulatory requirement implemented in many jurisdictions worldwide, including the European Union, and applies to crypto service providers. It is designed to help keep the financial system in which we operate safe.

As part of these requirements, Gate may need to collect and verify additional information relating to cryptocurrency deposits and withdrawals. Depending on the type of transfer, information about the sender, recipient, wallet owner, or the counterparty institution may be required before a transaction can be processed. This is an equivalent process similar to sending or receiving bank transfers, which require certain accompanying information from your end in order to be processed.

How does the Travel Rule affect me?

The Travel Rule applies to cryptocurrency deposits and withdrawals.
When making or receiving a transfer, you are required to confirm whether the transaction involves:

• Another crypto exchange or Virtual Asset Service Provider (VASP)
• A self-hosted (private) wallet

Additional verification may be required depending on the transaction type, destination, source of funds, and applicable regulatory requirements.
Important: To avoid delays, please ensure that any information provided matches the details associated with your verified Gate account.

What information may I need to provide?

Depending on the transaction, Gate may request:

• Full name of the sender
• Full name of the beneficiary
• Name of the sending institution
• Name of the receiving institution
• Wallet ownership information
• Additional supporting information where required for compliance purposes such as source of funds

Transfers To and From Another Exchange

Deposits from Another Exchange

If you are receiving cryptocurrency from another exchange, the sending exchange may require your name and information relating to your Gate account before the transfer can be completed.
In certain circumstances, transfers may remain pending until the required Travel Rule information is received and validated.

Withdrawals to Another Exchange

When withdrawing cryptocurrency to another exchange, you may be required to:

• Select the receiving exchange
• Provide beneficiary information
• Confirm ownership or relationship to the receiving account where required

The receiving institution must also be able to support Travel Rule requirements.

Transfers To and From Self-Hosted Wallets

What is a Self-Hosted Wallet?

A self-hosted wallet is a cryptocurrency wallet controlled directly by an individual rather than by an exchange or other regulated service provider.
Examples include:

• Hardware wallets
• Cold wallets
• Software wallets where you control the private keys

Deposits from a Self-Hosted Wallet

Where required, Gate may request confirmation that the wallet belongs to you before crediting the funds.

Withdrawals to a Self-Hosted Wallet

Before completing certain withdrawals, Gate may require verification that you control the destination wallet.
Once a wallet has been successfully verified, it may not need to be verified again.

What is a Satoshi Test?

A Satoshi Test is a wallet ownership verification method used to confirm that you control a specific wallet address.
The verification process generally involves completing a small cryptocurrency transaction from the wallet being verified. Successful completion demonstrates ownership or control of that wallet.
(The term Satoshi Test can be hyperlinked to a dedicated FAQ explaining the process in detail - agreed)

When will I need to complete a Satoshi Test?

A Satoshi Test may be required when:

• Depositing funds from a self-hosted wallet
• Withdrawing funds to a self-hosted wallet
• Additional wallet ownership verification is required
• Regulatory requirements require verification

What happens if the sending or receiving exchange is not Travel Rule compliant?

Where the sending or receiving institution is unable to exchange the information required under the Travel Rule, transfers may:

• Be delayed
• Remain pending
• Require additional verification
• Be rejected where regulatory requirements cannot be satisfied

In some cases, clients may be asked to use an alternative exchange or wallet that is capable of supporting Travel Rule requirements.

Why is my transfer pending?

Transfers may be temporarily delayed while:

• Required Travel Rule information is being collected
• Wallet ownership verification is being completed
• Additional compliance checks are being performed
• Information provided by another exchange is being validated

Why was my transfer rejected?

Common reasons include:

• Missing or incomplete Travel Rule information
• Failed wallet ownership verification
• Incorrect beneficiary information
• Regulatory restrictions
• Compliance checks are pending or incomplete or unsatifscatory

Frequently Asked Questions

Does the Travel Rule affect trading?

No. The Travel Rule only impacts cryptocurrency deposits and withdrawals.

Do I need to provide information for every transfer?

Requirements may vary depending on the transaction type, wallet, counterparty, value of the transfer, and applicable regulatory obligations.

Can I transfer funds using a hardware wallet?

Yes. However, you may be required to verify ownership of the wallet before certain transactions can be completed.

Is my information secure?

Gate processes personal information in accordance with applicable data protection and regulatory requirements. Information collected for Travel Rule purposes is used to meet legal and compliance obligations.

What happens if I do not provide the required information?

If mandatory information is not provided, Gate may be unable to process the transaction.

Who should I contact if I need assistance?

If you experience issues with Travel Rule verification, wallet verification, pending deposits, or withdrawals, please contact Gate Customer Support.