Part of anti-money laundering regulations, the U.S. government will strictly enforce the “travel rule” that requires cryptocurrency firms to disclose information about their customers.
Firms engaged in money service businesses, such as digital asset exchanges and wallet service providers, will need to verify their customers’ identities, identify the original parties and beneficiaries of transfers $3,000 or higher, and transmit that information to counterparties if they exist.
The travel rule was first issued by the Financial Crimes Enforcement Network (FinCEN) in 1996 as part of anti-money laundering measures applied to all U.S. financial institutions.