New rules applying for crypto transfers
We would like to share some important changes that will affect crypto transfers (deposits and withdrawals) starting December 30 2024 in line with the "Travel Rule" under the new EU law.
If you only buy and sell crypto at Finst and do not intend to deposit or withdraw crypto from or to external wallets, you may disregard this e-mail.
What is the Travel Rule?
The Travel Rule is a requirement under the EU Transfer of Funds Regulation designed to enhance transparency and prevent financial crime in the cryptocurrency space. The Travel Rule ensures that specific information about the sender and recipient is shared for crypto transfers (deposits and withdrawals). This measure will affect all crypto service providers operating in the European Union including Finst.
How will this affect you?
Crypto transfers from and to self-hosted wallets (non-custodial wallets)
For crypto transfers over €1.000 from and to a self-hosted wallet (e.g. Ledger or Metamask), we are required to perform additional verification that you own or control the wallet address. We will provide easy ways to complete this verification process, including message signing and uploading a screenshot if message signing is not supported for your wallet or a particular asset. Please note that if you choose to verify your wallet by uploading a screenshot, it may delay the processing time of your transfer due to manual verification.
The wallet verification will only be required once. After that, it will be verified for all tokens that use the same address. If you have already verified a self-hosted wallet address in the past, you will not be required to verify it again. However, we may still require further information such as a proof of residence address (only applicable to crypto withdrawals).
Crypto transfers from and to other exchanges (custodial wallets)
To deposit and withdraw crypto from and to an account in your name at another exchange or crypto service provider (also known as CASP), we may require further information about your crypto transfer to comply with the Travel Rule. As this new regulation requires crypto service providers to exchange information between them, crypto transfers from and to other exchanges may become temporarily unavailable at the beginning of 2025. In the meantime, you will still be able to transfer crypto using a self-hosted wallet. Of course, we will share further information about this as soon as possible.
What stays the same?
Buying, selling and swapping cryptocurrencies on Finst will remain unchanged, as well as performing EUR deposits and withdrawals. The Travel Rule only affects crypto transfers.
We’re committed to making this transition as smooth as possible for you and we will continue to share further information as soon as possible.
