What is the Travel Rule?

The Travel Rule is a regulatory requirement that mandates Virtual Digital Asset Service Providers (VDASPs), such as crypto exchanges like Bybit, to collect, retain, and transmit specific customer and transaction information whenever virtual asset transfers occur between service providers.

The rule ensures that information about the originator (sender) and the beneficiary (receiver) “travels” with the transaction, thereby supporting traceability, anti-money laundering (AML), and countering the financing of terrorism (CFT) efforts.

What is a VDASP?

A VDASP (Virtual Digital Asset Service Provider) is any business that offers services involving virtual assets, including exchanges, wallet providers, or custodians. In this context, it refers to crypto service providers like Bybit.

What are Virtual Assets (VAs)?

According to the Financial Action Task Force (FATF), Virtual Assets are digitally represented units of value that can be traded, transferred, or used for payment or investment but do not exist in physical form. Examples include cryptocurrencies, stablecoins, utility tokens, security tokens, and NFTs.

Why is the Travel Rule necessary?

The Travel Rule strengthens financial transparency in the virtual asset ecosystem. It enables regulators, including the Financial Intelligence Unit – India (FIU-IND), to:

• Detect and prevent money laundering, terrorist financing, and other illicit financial activities.

• Ensure that VDA transfers are traceable and compliant with India’s Prevention of Money Laundering Act, 2002 (PMLA) and FIU-IND Guidelines for VDA Entities.

Will Bybit implement Travel Rule?

Yes, as required by regulation, Bybit is fully compliant with the Travel Rule. We are required to collect specific information when you deposit or withdraw crypto, whether to or from another exchange (VASP) or a personal wallet (e.g., MetaMask).

How would it affect me as a Bybit customer?

As a Bybit customer, you are required to provide specific information when making crypto deposits or withdrawals. The type of information and whether wallet address verification is needed depend on the nature of the transaction.

Crypto deposit

Crypto withdrawal

Note: 

• To check if any further action is required for the crypto deposit and withdrawal, please go to the Deposit or Withdrawal History. 

Do I need to do wallet address verification for all deposits and withdrawals?

It depends on the type of transaction. See the breakdown below:

When do I need to verify a wallet address?

You need to verify wallet ownership for all deposits or withdrawals, regardless of whether through VASP or personal wallet. This is done via your transaction history once the address is detected.

What if the wallet belongs to someone else?

If the wallet address belongs to someone else (e.g., you're sending to or receiving from another person's personal wallet), you can copy the verification link from your deposit or withdrawal history and send it to them. They will need to complete the wallet verification on their side.

Do I need to verify the same wallet address twice?

No, once an address is verified, you won’t need to verify it again for future transactions.

What does “No Match Found Yet” mean for my withdrawal?

This message appears when the recipient VASP has not yet returned a match for the required beneficiary information. You can still submit the withdrawal; it will be processed once we receive confirmation from the receiving platform. You may cancel the withdrawal at any point before verification is completed.

Can I cancel my withdrawal?

Yes, as long as the verification process hasn’t been completed. If the Cancel button is greyed out, the request has progressed too far to be canceled. 

Why does it show “Information Match Failed” for my withdrawal?

This is because the recipient information you provided does not match the details from the recipient's destination. Please ensure you fill in the correct information to submit your withdrawal request. 

Does any amount of deposits and withdrawals require verification?

Yes, any deposit and withdrawal amount is subject to verification.

What happens if my verification fails?

If your wallet ownership verification fails, you can click Retry to re-attempt the process. Ensure you correctly select the wallet type and enter accurate details (such as full name and originator/beneficiary data).

Can I request a refund to a different wallet if verification fails?

Yes, you can initiate a refund from the Deposit History page or the Pending Assets tab in your Funding Account. Select the coin, chain type, new wallet address, and amount. Then click Submit.

Important: Double-check all refund details before submitting.

Will this information be shared with third parties?

The information will only be shared with other regulated VASPs involved in the transaction, as legally required, and will be treated with the utmost confidentiality. Bybit takes stringent security measures to prevent unauthorized persons from accessing customer data.