Disclaimer: The Travel Rule solutions mentioned in this article refer to an incoming, industry-wide change — this change will not take immediate effect. Deposits and withdrawals remain unchanged for now — users will be informed about any change at least 2 weeks prior to the actual implementation date.
What is the Travel Rule? In this article, we answer questions about what the Travel Rule is and how it will affect you as a Coinhako user.
- How do I add new addresses to the address book?
- What happens to the transactions if I don’t verify the addresses?
- I’ve used Coinhako to send cryptos to other addresses before, why do I need to verify them now?
- Why is my ‘send’ transaction pending? How do I fix it?
- Sending cryptos:
- I’m unable to send crypto to my private wallet recipient address
- I’m unable to send crypto to a VASP address
- Why does it say my confirmation token is invalid?
- Receiving cryptos:
- Can I provide additional information for a pending ‘receive’ transaction?
In June 2019, international regulators introduced the Travel Rule as a way to combat Anti-Money-Laundering/Counter-Financing-Terrorism (AML/CFT) challenges associated with the increasing usage of cryptocurrencies across the globe. The implementation of the Travel Rule will impact Virtual Asset Service Providers (VASPs) and the cryptocurrency industry at large.
How does the Travel Rule work?
The Payment Services Act (PS Act) in Singapore requires VASPs, like Coinhako, to comply with the Travel Rule to ensure the continuity of our services for users.
Whenever a user of one exchange sends/receives cryptocurrency worth more than 1,000 USD/EUR to a user of another exchange, the originating exchange must share identifying information about both sender and recipient with the beneficiary exchange, in an “immediate and secure” manner.
These rules will only be applied to virtual asset service providers, such as cryptocurrency exchanges, and will not affect individuals who choose to transact in cryptocurrencies.
All features on Coinhako such as buy, sell, send, receive and swap, remain available to our users.
In order to align with the Travel Rule, we will be introducing a series of updates to ensure the continuity of our services for you.
Users must indicate the Address Origin before sending crypto to an external address
Before sending crypto out of their Coinhako wallets, users will be required to indicate whether they are sending crypto to a private wallet address or another platform.
If they are sending crypto to another platform, they will be required to select the platform their crypto is being sent from the drop-down menu on the “Send” page.
Withdrawals to unverified personal addresses and certain non-compliant VASPs will be restricted.
Users will only be able to send crypto to verified private wallet addresses and exchanges that are compliant with the latest regulatory measures.
While we understand that some of these changes might take time to get used to, and do not wish to inconvenience you, these measures are necessary to ensure the continuity of our services for you.
The address book is a new feature which allows users to seamlessly save and retrieve wallet addresses on Coinhako.
With the address book feature, users bypass the step of entering a wallet address each time a crypto transaction is made, by saving frequently-used wallet addresses.
How do I add new addresses to the address book?
Step 1: Select ‘Add new address’
Step 2: Fill up the relevant fields on the pop-up and select ‘Confirm’ once done.
What happens to the transactions if I don’t verify the addresses?
Your transactions will still be processed for now, but you will not be able to send and receive from unverified addresses when we launch Phase 2 of the Travel Rule in the near future.
I’ve used Coinhako to send cryptos to other addresses before, why do I need to verify them now?
With the implementation of the Travel Rule comes a need for new measures to ensure compliance with local regulations.
From Phase 2 onwards, you will only be able to send crypto to private wallet addresses that are verified.
Your verification helps us keep the platform safe and accountable, and ensure the continuity of our services for you.
Transactions may get delayed due to various reasons. One reason you may experience a pending transaction is due to a congested network. We recommend checking the related platforms involved to ensure that the network is smooth to avoid experiencing any delays.
👉 More info here on why crypto transactions may get delayed.
I’m unable to send crypto to my private wallet address **
In alignment with the Travel Rule, Coinhako users are only able to send crypto to verified addresses. Please try another recipient address that has already been verified or proceed to verify your address.
To verify your address, you will need to log in to the Coinhako app and complete the Satoshi Test by sending a small amount of tokens from your external wallet to your Coinhako wallet, to verify that you are the owner of the wallet.
**From Phase 2 onwards
I’m unable to send crypto to a VASP address
In accordance with the Travel Rule, Coinhako users can only send to Virtual Asset Service Providers (VASPs) addresses with the necessary and relevant KYC information provided. Please ensure that all the information are correctly entered eg. address, address origin, recipient name, etc.
Why does it say my confirmation token is invalid?
A confirmation token may be invalid, if it is used outside the given time duration.
To proceed with crypto transactions, a valid email verification code and Two Factor Authentication (2FA) code is required.
The 6-digit email verification code is valid for 10 minutes after receiving the email, while the 2FA code retrieved from your chosen application expires within 30 seconds. Do ensure that both confirmation tokens are entered correctly, and within the valid time frame given.
Can I provide additional information for a pending ‘receive’ transaction?
Once a transaction has been made, users will no longer be able to edit the information as it is immediately sent to the blockchain. Do double check the information provided before confirming any transactions.