Interview
A compliance officer on the travel rule in practice
The travel rule requires providers to pass on sender and recipient data. On paper that is simple. In practice it collides with wallets that have no intermediary and with systems that do not speak the same language.
In conversation with
Karen Verlinden — Compliance officer, Europese betaalinstelling
What actually travels along
Between two licensed providers a name, an account reference and sometimes an address travel with the transaction, through separate messaging channels rather than the blockchain.
The difficulty is not the data but the alignment: every provider uses its own protocol and its own definition of a successful match.
Where the time goes
| Step | Expected | Reality |
|---|---|---|
| Collect data | Instant | Instant |
| Identify counterparty | Seconds | Minutes to hours |
| Match the name | Automatic | Often manual |
| Release | Immediate | After review |
Self-hosted wallets
When a customer withdraws to their own wallet there is no counterparty to exchange data with. The provider then has to establish that the wallet belongs to the customer.
That is done with a signed message or a small test transfer. Both work, but they shift the burden to a user who rarely understands why.
- Ownership proof through a signed message
- Test amount to confirm the address
- Saved address list for recurring withdrawals
What could improve
One shared format would remove most manual work. Standards exist, but adoption remains uneven across the market.
Clear communication helps too: a user who knows in advance that a withdrawal takes an extra step does not read the delay as arbitrary.
Frequently asked questions
Does the travel rule apply to every transfer?
It applies to transfers through licensed providers; thresholds and exemptions differ per situation.
Can a withdrawal to my own wallet be refused?
Yes, if the provider cannot establish ownership of the address.
About the author
Lieke schrijft over blockchaintechnologie, AI en beveiliging. Ze test protocollen en wallets zelf en legt uit waarom een technische keuze er voor gebruikers toe doet.