The Travel Rule is a global anti-money laundering (AML) standard that requires crypto service providers to share information about the sender and receiver when processing transactions.
What Is the Travel Rule?
Originally introduced by the Financial Action Task Force (FATF) for traditional banking, the Travel Rule has been extended to cover Virtual Asset Service Providers (VASPs) — including crypto exchanges, wallets, and custodians like Kolo.
Under this rule, when you send or receive crypto above a certain threshold, we are required to collect and share identifying information about both parties involved in the transaction.
Why Do We Need It?
The Travel Rule helps:
Prevent money laundering and terrorist financing
Increase transparency in crypto transactions
Comply with EU regulations (MiCA and AML directives)
Protect users by ensuring funds flow through legitimate channels
As a regulated crypto service provider in the EU, Kolo is legally required to comply with the Travel Rule.
How It Works in Kolo
When You Receive Crypto (Top Up)
When depositing crypto to your Kolo wallet, you'll be asked to provide sender details:
Sender Type | Required Information |
Individual | Full name & Residency |
Business | Company name & ID |
You'll also need to specify the wallet type:
Custodial wallet — hosted by an exchange (e.g., Binance, Coinbase, Kraken)
Non-custodial wallet — self-hosted wallet where you control the private keys (e.g., MetaMask, Ledger, Trust Wallet)
When You Send Crypto (Withdraw)
When withdrawing crypto from Kolo, you'll be asked to provide receiver details:
Receiver Type | Required Information |
Individual | Full name & Residency |
Business | Company name & ID |
Same as above, you'll need to indicate whether the destination is a custodial or non-custodial wallet.
Custodial vs. Non-Custodial Wallets
Custodial Wallet A wallet managed by a third-party service (like a crypto exchange). The provider holds your private keys on your behalf.
Examples: Binance, Coinbase, Kraken, OKX
Non-Custodial Wallet A wallet where you have full control of your private keys. No third party can access or manage your funds.
Examples: MetaMask, Ledger, Trezor, Trust Wallet
Frequently Asked Questions
Why do I need to provide this information?
Why do I need to provide this information?
It's a legal requirement under EU anti-money laundering regulations. Providing accurate information helps us process your transaction quickly and keeps your account in good standing.
Why do I need to provide this information?
Why do I need to provide this information?
It's a legal requirement under EU anti-money laundering regulations. Providing accurate information helps us process your transaction quickly and keeps your account in good standing.
What happens if I provide incorrect information?
What happens if I provide incorrect information?
Providing false or inaccurate information may result in transaction delays, additional verification requests, or account restrictions.
Is my information shared with third parties?
Is my information shared with third parties?
When you send crypto to a custodial wallet (like Binance, Coinbase, or Kraken), the receiving platform is also a licensed and regulated entity. Under the Travel Rule, your sender information is automatically transmitted to them through secure compliance networks — just as they would share receiver details with us when you receive crypto.
This exchange happens only between regulated VASPs and is required by law to ensure transparent, compliant transactions. We never sell your data or share it with unauthorized parties.
Does this apply to all transactions?
Does this apply to all transactions?
The Travel Rule applies to crypto transfers. It does not apply to card payments or internal transfers between your own Kolo wallets.