The purpose of the Travel Rule implementation at Phemex
The Travel Rule is an international standard established to combat money laundering and terrorist financing within virtual assets.
It requires virtual asset service providers (VASPs) like Phemex to disclose specific customer data for crypto asset transactions of more than a certain amount. By implementing the Travel Rule, we aim to enhance transparency and traceability in virtual asset transactions, similar to the obligations of traditional financial institutions.
The impact of Travel Rule on users
Under Travel Rule requirements, The implementation of Travel Rule measures at Phemex will be gradual and primarily affect users in regulated regions. If you belong to the regulated region, when initiating a withdrawal or receiving a deposit transaction, you will be asked to specify whether the transfer is going to a private wallet or cryptocurrency exchange account and provide the legal name of the beneficiary party. Additional supplementary information may also be required.
The same may be applied to incoming crypto transfers in regulated regions, where deposits without a Travel Rule message may be locked until you provide additional information on the person who initiated the crypto transfer.
If you're making a withdrawal to another exchange:
1.If you’re sending crypto to youself on another exchange, just select the exchange where you want to receive the crypto
2.If you’re sending crypto to other people on another exchange, just select the exchange and provide the recipient’s name as it’s registered on their exchange account.
3.If you don't find the name of the receiving exchange in the list of selected exchanges, you can select ‘Other’ and add the name of the exchange and the URL of the web page to to establish a compliant Travel Rule connection.
4.Exchange compliance requirements vary from region to region, and for some regions exchanges may need to collect additional information.
5.To make a withdrawal to another exchange, the receiving exchange entity must be Travel Rule compliant. Global exchanges operate using different entities to serve different customers around the world.
6.What happens if my withdrawal is rejected due to the Travel Rule?
If your withdrawal is rejected due to the Travel Rule, your assets won't be sent. You will need to complete the withdrawal again, ensuring that all recipient details are accurate.
Note.The Travel Rule is still a relatively new requirement in the world of crypto so even within one exchange group, it may be that not all of the exchange entities are ready to handle Travel Rule transactions.
If you're making a withdrawal to a private wallet:
1.As part of our efforts to align with both local and global requirements, you're required to verify your personal (non-custodial) wallet addresses if you're in the regulated regions. This helps provide a safe and accountable platform for all.
2.If you’re withdrawing to a wallet that’s not yours, you’ll need to provide the recipient’s full name.
