When you send crypto from one exchange to another, the FATF Travel Rule, a global standard requiring crypto platforms to share sender and receiver info for transactions over $1,000. Also known as Recommendation 16, it was created by the Financial Action Task Force to stop money laundering through digital assets. This isn’t a suggestion—it’s a legal requirement for exchanges in over 200 countries, including the U.S., EU, South Korea, and Canada.
Why does this matter to you? Because it’s directly tied to the shutdowns and fines you’ve seen in the news. When Canada seized $40 million from TradeOgre, it wasn’t just about anonymous coins—it was about violating the Travel Rule by skipping KYC checks. Same with Upbit’s $34 billion potential penalty: South Korea cracked down because the exchange didn’t track where funds were going. These aren’t isolated cases. They’re enforcement actions under the same rule. The FATF Travel Rule forces exchanges to collect names, IDs, and wallet addresses for every transaction above the threshold. That means no more fully anonymous transfers between platforms. It also means your wallet provider might ask for more info than before—even if you’re just sending to a friend.
Some people think this kills privacy in crypto. But it’s not about banning anonymity—it’s about making sure bad actors can’t hide behind it. Real crypto users who follow the rules aren’t being punished; they’re being protected from scams and unregulated platforms that vanish overnight. The posts below show how this rule plays out in real time: from exchange shutdowns to airdrop scams that exploit confusion around regulation. You’ll see how platforms like Bitsonic and Libre operate under these rules—or fail to. You’ll understand why fake airdrops like CovidToken or HyperGraph HGT don’t just look sketchy—they’re breaking laws that the FATF Travel Rule helps enforce. This isn’t just policy. It’s the backbone of what keeps your crypto safe—or exposes you to risk.
By 2025, KYC and AML rules for crypto are mandatory worldwide. From the U.S. to the EU, exchanges must verify users and monitor transactions. Non-compliance means fines, bank closures, and lost business.