The Travel Rule for Crypto Assets, or FATF Travel Rule, is a set of global regulations that require financial institutions and Virtual Asset Service Providers (VASPs) to collect and share information about parties involved in crypto asset transactions when they reach certain value thresholds. These rules aim to prevent money laundering, terrorism financing, and other illegal activities in the crypto ecosystem.

The Travel Rules for Crypto Assets were first introduced by the Financial Action Task Force (FATF) in 2019, extending similar rules that have applied to traditional financial transactions since 1996. As per these rules, VASPs such as crypto exchanges and wallets must collect and share information such as names, addresses, and other identification details of senders and receivers on transactions above a certain value threshold.

This information must be shared among the VASPs involved in the transaction, as well as with relevant regulatory bodies. The aim is to ensure compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations, as well as increase transparency in the crypto ecosystem.

The implementation of the Travel Rules for Crypto Assets is considered essential to prevent the misuse of crypto for illicit purposes, as well as to maintain the integrity of the global financial system. However, it also raises concerns about privacy and decentralization within the crypto community.