Does this apply to me?
The Travel Rule applies to customers verified in Indonesia, Malaysia, South Africa and the United Kingdom. We’re gradually rolling it out to customers in Nigeria.
General
What is the Travel Rule?
In simple terms, the Travel Rule requires financial institutions to share information about the individuals on either side of a transaction. This already applies to traditional financial institutions like banks.
The Travel Rule is being extended to Virtual Asset Service Providers (like Luno) on a country-by-country basis. So, if you’re a customer in Malaysia, Indonesia, South Africa or the United Kingdom, Luno will ask you for some additional information about where you send crypto to and where you receive crypto from.
What is a VASP or CASP?
VASP stands for Virtual Asset Service Provider. CASP stands for Crypto Asset Service Provider. These terms are used interchangeably. To put it simply, a VASP or CASP is any platform that offers crypto services to customers, such as exchange services or custody services. Examples include Luno, Binance, Coinbase, etc.
Does the Travel Rule apply to me?
If you’re a customer in Malaysia, Indonesia, South Africa or the United Kingdom then the Travel Rule applies when you send or receive crypto. We've also begun to implement the Travel Rule in Nigeria, but this is not yet launched to all customers.
Luno is monitoring the adoption of the Travel Rule in all of the countries in which we operate and it is expected that the Travel Rule will apply to all customers in the near future.
Why does Luno implement the Travel Rule?
The Financial Action Task Force (FATF) is a global organisation that sets international standards and policies for countries to follow, like the Travel Rule, to combat money laundering and terrorist financing. Where the Travel Rule has been incorporated into a country’s laws, Luno must comply with the Travel Rule.
Luno also supports the FATF’s objectives behind introducing the Travel Rule to the crypto industry. In time, we believe that the Travel Rule will lead to higher customer confidence in VASPs and will promote trust in the crypto industry as a whole.
Will the Travel Rule make fees more expensive?
No, the Travel Rule does not affect your fees at all
Does Luno give my information to the authorities?
Luno respects customer privacy, and will only share information with authorities or regulators where required by law. You can find more detailed information in our Privacy Policy.
Does this mean crypto is not decentralised anymore?
A common criticism of the Travel Rule is that it may lead to the increased centralisation of the crypto industry. Keep in mind that the underlying technology that powers all cryptocurrency transactions remains decentralised. Transactions continue to be recorded and confirmed on a public blockchain that isn’t controlled by any single authority.
Luno facilitates the transfer of high volumes of funds, so we have a responsibility to comply with the latest anti-money laundering (AML) and counter terrorist financing (CTF) regulations. While some may feel that the Travel Rule goes against the decentralised nature of cryptocurrency, regulations like this are a key step in legitimising cryptocurrency, building trust in the industry, combating fraud, and keeping our customers’ funds safe.
Tip
You can learn more about our approach to compliance, or visit our blog to read about Luno’s views on regulation.
Sending crypto
What info do I need to provide when sending crypto?
You’ll need to let us know:
- Whether you’re sending crypto to yourself or to someone else,
- whether the address is a private address controlled by the individual owner, or hosted by another exchange or crypto platform,
- and some details about the recipient and the platform/provider they’re using.
Tip
Learn more about how the Travel Rule applies to crypto sends and why you're asked questions when sending crypto.
What if I misspell the person’s name? Will I lose my crypto?
It’s important that you provide us with the correctly spelled name. If you misspell someone’s name, you won’t lose your crypto, but the transaction may be delayed or cancelled.
Which crypto platforms can I send to?
Before our customers send to another Virtual Asset Service Provider (VASP), the Travel Rule requires Luno’s compliance team to assess that VASP. The full list of approved VASPs. You’ll also find them in a selection menu when you go through the crypto send process.
What if the crypto platform has multiple entities listed?
If you're sending crypto to a Virtual Asset Service Provider (VASP) with multiple country branches, try to be specific about the country branch. Please check which branch the recipient is a customer of. The VASP’s Terms of Use will usually have this information. If this information is not available, please select the most generic option.
What if I want to send to a platform that is not on the list?
Unfortunately, if you don’t see the Virtual Asset Service Provider (VASP) listed on the selection menu when you make your send, you won’t be able to send cryptocurrency to that platform from Luno. If the VASP is not on the list, please contact support, and our compliance team will assess the VASP in due course.
Binance was banned in Malaysia, so why is it on Luno's list of VASPs?
It's true that Binance is not a registered Digital Asset Exchange with the Securities Commission of Malaysia. The Securities Commission banned Binance from offering services to Malaysians, but Binance as a company is still operating. Luno customers can send crypto to Binance, provided you give us all the necessary Travel Rule information. You should be aware of the risks of sending crypto to an unregulated exchange in Malaysia.
Can I send crypto to a private wallet address (like Metamask or Ledger)?
Yes. The Travel Rule still applies to these transactions so you may be required to provide us with information about where you’re sending to.
What does Luno share about me with the corresponding crypto platform?
To comply with the Travel Rule, Luno may need to share certain information about you with the corresponding crypto platform. Luno will only share information about you with the crypto platform which you have elected to send to, and only where Luno has approved the crypto platform. Also, Luno will only share information in line with the applicable laws in your country. This means that:
- In the UK, South Africa and Malaysia, we may be required to share your name and certain additional information such as your identity number and residential address.
- In Indonesia, we don’t currently share your information.
Receiving crypto
What info do I need to provide when receiving crypto?
When you receive crypto from another Virtual Asset Service Provider (VASP), you’ll need to provide us with the name of the VASP, so that we can request the Travel Rule information from that VASP.
Tip
Learn more about how the Travel Rule applies to crypto receives and why you're asked questions when receiving crypto.
What if I get crypto from my mining rig or mining pool?
Personal mining rigs or mining pools are treated as private wallet addresses. You may receive and send to these addresses. Please declare it as a private wallet address and provide us with the name of the mining pool.
Note
A couple of mining pools need to be named very specifically to avoid transaction delays:
- If you’re receiving from Ethermine, please enter the name ‘Ethermine pool’
- If you’re receiving from F2Pool, please enter the name ‘F2Pool mining’
Can I receive crypto from a private wallet address?
Yes. The Travel Rule still applies to these transactions so you may need to provide us with information about where you have received the funds from.
Can I receive from crypto faucets online?
Yes, mining faucets are considered to be private wallets. You may receive from a crypto faucet into your Luno account provided that you provide us with the necessary Travel Rule information.
I'm a Malaysian customer. Why is my received crypto being held?
To comply with local regulations from the Securities Commission in Malaysia, we may need information about the sender before crypto received from an external source can be made available in your wallet.
If you receive crypto from another exchange, a private wallet or another person, your funds may be temporarily held while we collect the required sender information. You'll receive a prompt in the Luno app asking you to provide details about where the crypto came from. This may include information such as the sender's name, nationality, date of birth or the name of the exchange used to send the funds.
Once you've submitted the required information and it has been verified, your funds will be released to your wallet and made available for use.
Your funds remain safe while they are being held, but you won't be able to access or transact with them until the verification process is complete. This is a standard regulatory requirement under the Travel Rule, which helps prevent money laundering and other financial crime.