- CASP → CASP transfers: sender and recipient (originator/beneficiary) info must accompany every transfer—no value threshold.
- Self-hosted wallets: for transfers over €1,000 between a CASP and a self-hosted wallet, additional measures (e.g., ownership checks) can apply using a risk-based approach.
- Data completeness matters: missing or inconsistent details may delay your withdrawal or deposit while information is requested or validated.
- Global context: TFR is EU law; other regions have similar Travel Rule rules. Cross-border compliance may require extra data exchanges between providers.
What is TFR?
The Transfer of Funds Regulation (TFR)—Regulation (EU) 2023/1113—implements the Crypto Travel Rule across the EU. It aligns crypto transfers with long-standing wire-transfer rules by requiring key identifying information about the originator and the beneficiary to travel with the transfer when it moves between obliged entities such as Crypto-Asset Service Providers (CASPs).
Why the rule exists
The goal is to improve traceability and help prevent money laundering and terrorist financing, in line with FATF standards. The EU’s approach builds on years of AML/CFT practice from traditional payments and adapts it to crypto markets for better consumer protection and market integrity.
Who is in scope
Obliged entities include EU CASPs (exchanges, custodians) and payment providers. When a CoinW user sends to or receives from another obliged entity, TFR rules on information sharing, screening, and deficiency handling apply. Outside the EU, similar Travel Rule regimes may require comparable information exchanges.
What information travels with your transfer?
Exact data fields can vary by context and risk, but typically include:
- Originator: name, account/identifier (e.g., account, wallet, or user ID), and—where required—address or official identification number.
- Beneficiary: name and account/identifier sufficient to ensure the transfer reaches the intended recipient.
Providers must screen transfers for missing, inconsistent, or obviously inaccurate data and take appropriate measures when issues are detected, in line with supervisory expectations set out in the EBA Guidelines on information requirements for transfers of funds and crypto-assets.
CASP ↔ CASP vs. Self-Hosted Wallets
| Scenario | What CoinW must do | What you may notice |
|---|---|---|
| CASP → CASP (e.g., CoinW → another exchange) | Attach required originator/beneficiary data and screen for completeness—no de-minimis threshold. | Occasional prompts for recipient details (name, account/ID). If data is missing, the transfer may be paused while we request it. |
| CASP ↔ Self-Hosted wallet (your own wallet) | Collect required information. For transfers > €1,000, apply additional, risk-based measures—e.g., ownership checks—to verify control of the address. | For larger amounts, you might be asked to sign a message, complete a small verification step, or supply extra details before the transfer proceeds. |
What changes CoinW users may notice worldwide
- More precise recipient prompts: when withdrawing to another exchange or wallet service, you may be asked for the recipient’s name and account/identifier to ensure compliant data travel.
- Self-hosted wallet checks over €1,000: you may be asked to prove ownership/control of the destination address using a simple, privacy-respecting method.
- Occasional follow-ups for missing info: to avoid rejections under TFR and similar Travel Rule regimes, we may contact you to confirm or correct transfer details.
Practical tips to avoid delays
- Keep your account profile accurate: ensure your legal name and ID are up to date so originator data matches your transfer.
- Have beneficiary details ready: for CASP-to-CASP transfers, confirm the recipient exchange/service account or user identifier in advance.
- For self-hosted wallets over €1,000: be prepared to complete a lightweight ownership verification step (e.g., on-chain micro-check or message signing) if requested.
- Double-check addresses and networks: TFR doesn’t change blockchain mechanics—mistyped addresses or wrong networks can still lead to loss of funds.
Further reading & official resources
- EU legal text: Regulation (EU) 2023/1113 (TFR)
- Supervisory guidance: EBA Guidelines on information requirements for transfers of funds & crypto-assets
- National overview: Austrian FMA – Transfer of Funds Regulation
- Practical explainers: Notabene, 21 Analytics, KPMG Brochure (PDF), FIAU Malta Travel Rule Guidelines (PDF), Hacken, Waltio
- Background context: IMF – AML/CFT
FAQs
Q: Does TFR apply only in the EU?
A: TFR is an EU regulation. If you send to or receive from non-EU providers, they may apply similar Travel Rule requirements under local laws. Cross-border transfers may require extra data exchange between providers.
Q: Will my personal data be public on-chain?
A: No. Required information is exchanged securely between providers; it is not written to the blockchain.
Q: What happens if the recipient CASP can’t be identified?
A: The transfer may be rejected or delayed until sufficient beneficiary information is provided.
