Travel Rule - Customer data collection

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Important: Merchants with Preselect Cryptocurrency flow and full API integration

If you’re using the /quotes API endpoint to either Preselect Cryptocurrencybefore redirecting customer to the Payment Window, or to process payments entirely on your own website (without redirecting the end-user to Coinify's Payment Window, adjustments will be required:

You can now preselect cryptocurrency via existing Create Payment Intent API endpoint. See more here.

You now must redirect the customers to the Payment Window.

What is the Travel Rule?

The Travel Rule is a regulatory requirement established by the Financial Action Task Force (FATF) that applies to Virtual Asset Service Providers (VASPs) and Crypto Asset Service Providers (CASPs). It mandates that certain customer information must accompany any transactions. If you're interested, you can see the full FATF's document here and extended EU regulations created based on the FATF's "Recommendation" 16 here.

What This Means for Your Customers

To comply with the Travel Rule, we will require customers to complete a basic KYC (Know Your Customer) flow within the Payment Window flow before transacting. This will include collecting the following data, depending on whether the customer is an Individual or a Business:

• Full legal name (or Business name in case it's a business customer)
• Email
• Country of residence
• Residential Address
• Date of birth
• Legal Entity Identifier (only in case of Business customers)
• Type of the wallet the customer is paying from or receiving funds to (custodial/non-custodial)
• Wallet address (for non-custodial walets) or Exchange name (in case of Custodial wallet)

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In addition, for transactions involving self-hosted wallets over 1000 EUR, Coinify will require customers to verify wallet ownership. This may involve:

• Message signing using the wallet’s private key

API endpoints to skip the Travel Rule flow

We’ve developed API endpoints to let merchants submit Travel Rule data on behalf of customers — you can check these endpoints under the Customer section of our API reference documentation.

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In case the required data is provided by the merchant via the API endpoints, the Travel Rule flow steps will be skipped on the Payment Window for the customer, which removes friction and improves the UX.

Please see the Individual customer flow example below:

Please see and example of the Business customer flow below: