What is the Travel Rule?
The Transfer of Funds Regulation, also known as the “Travel Rule,” was introduced to make the handling of cryptocurrencies more secure and transparent. The aim of this regulation is to curb money laundering and the financing of terrorism by collecting and transmitting information about senders and recipients of crypto transactions. This creates a standard comparable to existing regulations for traditional financial transactions. This regulation is a step towards further integrating cryptocurrencies into the regulated financial market.
EU Regulation
EU Regulation
The new EU rules on the traceability of crypto transfers were adopted in April 2024. Learn more in the official press release of the European Parliament.
What does this mean for me?
As of December 30, 2024, these new EU regulations for crypto transactions will come into force. This will require verification of your wallet to ensure that external wallets belong to you.
21bitcoin is making it as easy as possible for you to comply with the new regulation. Therefore, we offer the option of either:
Verifying your wallet with two-factor authentication; or
Easily digitally signing your wallet.
We deliberately avoid methods like the “Satoshi test” that some other services use, because not only is it easier for you that way, but there are no additional fees for you!
Hosted (custodial) vs. Private (non-custodial) wallets
Hosted wallets:
are managed by a third party that stores your private keys.
Examples: exchange wallets or service provider wallets.
Private wallets:
You have full control over your private keys.
Examples: BitBox, Trezor, Ledger Blue Wallet, etc.
You must verify your wallet if:
you are sending Bitcoin to a private wallet (i.e., a wallet whose private keys you control).
This is how verifying a private wallet works
Select Wallet Type:
In your app, tap on "Manage wallets" and then "Add New Wallet"
Select "Private Wallet"
Add Wallet Details:
Enter a wallet name and a new address
Select whether you want to verify the wallet ownership via 2FA signature or Digital signature
Verify Wallet Ownership:
2FA signature: Confirm your details and perform 2FA
Digital signature: You will receive an email with further information for your wallet
Instructions for verifying private wallets
We offer specific instructions for the following wallets:
For some wallets, such as Trust Wallet or Exodus, signing is not currently possible.
Need help?
Our support team is happy to help. If you have any questions or require assistance, contact us directly from your app.