Travel Rule in zondacrypto pay

Glossary

Travel Rule - a set of guidelines stemming from FATF Recommendation 16 aimed at preventing money laundering and terrorist financing. It applies to financial institutions involved in the transfer of virtual assets and cryptocurrency companies, known as VASPs. It requires VASPs to obtain and disclose accurate information regarding the sender and recipient of a virtual asset transfer to VASP counterparties or financial institutions, both during and prior to the transaction.

VASP (Virtual Asset Service Provider) – Virtual asset service providers are entities that conduct exchanges between different forms of virtual assets or between virtual assets and fiat currencies. These include, for example, cryptocurrency exchanges, online and offline wallets.

LEI – is a unique global identifier for legal entities involved in financial transactions, also known as an LEI code or LEI number. Its purpose is to help identify legal entities in a globally accessible database.

Originator – the party authorising the transfer of its virtual assets or placing an order for such a transfer.

Beneficiary – the recipient of a given transfer of virtual assets.

Merchant panel – the user panel of our zondacrypto pay platform.

Customer – the person making the payment through the gateway.

 

What is the Travel Rule?

Under the new Regulation (EU) 1113/2023 on information accompanying transfers of funds and certain crypto-actives (commonly known as the Transfer of Funds Regulation or TFR), we are required to implement the Travel Rule. This means that we must collect and share certain data about the originator and beneficiary of each cryptoasset transfer. This information includes details such as name, address, wallet address and other details.

In most cases, this data will be automatically shared with those involved in processing the transfer. However, in some situations, additional information may need to be collected in order to complete the transfer in accordance with the new regulations.

Compliance with the TFR, including the Travel Rule, is part of a broader regulatory effort to promote transparency and enhance the security of cryptoasset transactions. As an increasing proportion of the market will use Travel Rule in their day-to-day operations, non-compliance could result in difficulties in processing transactions and, in some cases, even rejection.

More information on Travel Rule can be found here: https://zondacrypto.com/en/academy/travel-rule.

 

Payment gateway / Payment gateway (API)

Note: The described changes will take place on an ongoing basis, while use will be optional until 29.12.2024. After this date – obligatory.

Additional fields will appear on the payment gateway, specifying:

• data of the beneficiary of the transaction,

• and the target VASP,

which should be completed by the customer when making the withdrawal (towards payment).

If the information from the customer is not complete, the transaction will not be able to be processed immediately. We will then send an email to the email address provided when the payment was generated with a link to a form where the customer can complete the required information.

Required changes

• Not applicable.

Optional changes

• In order for the customer to receive an email with a link to the form, their email address must be completed at the payment generation stage. Otherwise, the customer will only be able to access the form by going to the payment gateway.

The ability to set a custom beneficiary name for the transaction in your site settings in the merchant panel will be made available.

 

 Fast outgoing payment

Note: The described changes will take place on an ongoing basis, while the use will be optional until 29.12.2024. After this date – obligatory.

In order to correctly order a withdrawal, we will need three new pieces of data. You will complete them via the appropriate form when ordering a quick withdrawal:

• transaction beneficiary data,

• the name of the target VASP (optional),

• LEI or other identification number (in case the beneficiary is a company).

If the mentioned information is not completed, the transaction will not be processed.

 

Funds withdrawal (API)

Note: The changes described will take place on an ongoing basis, while use will be optional until 29.12.2024. After this date – obligatory.

For a correct withdrawal order, we will need three new pieces of data:

• transaction beneficiary data,

• the name of the target VASP (optional),

• LEI or other identification number (in case the beneficiary is a company).

Required changes

• In the withdrawal order requisition, you must provide a parameter specifying the transaction beneficiary details.

• In the requisition ordering the withdrawal, you should provide a parameter specifying the name of the target VASP.

Optional changes

• In the requisition requesting the withdrawal, you should provide a parameter specifying the LEI or other identification number (in case the beneficiary is a company).

 

Two-step withdrawal (API)

Note: The changes described will take place on an ongoing basis, while use will be optional until 29.12.2024. After this date – obligatory.

For a correct withdrawal order, we will need three new pieces of data:

• transaction beneficiary data,

• the name of the target VASP (optional),

• LEI or other identification number (in case the beneficiary is a company).

Required changes

• In the withdrawal order requisition, you must provide a parameter specifying the transaction beneficiary details.

• In the withdrawal ordering the withdrawal, you should provide a parameter specifying the name of the target VASP.

Optional changes

• In the requisition requesting the withdrawal, you should provide a parameter specifying the LEI or other identification number (in case the beneficiary is a company).

 

Mass withdrawal

Note: The changes described will take place on an ongoing basis, while use will be optional until 29.12.2024. After this date – obligatory.

For a correct withdrawal order, we will need three new data:

• transaction beneficiary data,

• the name of the target VASP,

• LEI or other identification number (in case the beneficiary is a company).

Required changes

• In the .csv file, you will need to complete the field containing the transaction beneficiary details for each individual withdrawal.

• In the .csv file – for each individual withdrawal, you must complete the field containing the name of the target VASP.

Optional changes

• In the .csv file – for each individual withdrawal, you should complete the field containing the LEI or other identification number (where the beneficiary is a company).

 

Deposits

Note: The changes described will take place on an ongoing basis, while use will be optional until 29.12.2024. After this date – obligatory.

When ordering a withdrawal from another platform (VASP), you will be asked to provide three new details:

• the details of the beneficiary of the transaction (your details),

• the name of the target VASP (zondacrypto),

• LEI or other identification number (for a corporate account only).

If you request a withdrawal from a VASP that does not provide Travel Rule information, we will ask you to complete the aforementioned data through the corresponding form.

Required changes

• Not applicable.

Optional changes

• Not applicable.

 

Withdrawals

Note: The changes described will take place on an ongoing basis, but use will be optional until 29.12.2024. After this date - obligatory.

To order a withdrawal correctly, we will need three new data:

• transaction beneficiary data,

• the name of the target VASP (optional),

• LEI or other identification number (in case the beneficiary is a company).

You will complete these details at the withdrawal order stage.

Required changes

• Not applicable.

Optional changes

• Not applicable.

 

E-commerce plugins

Please note: The changes described will take place on an ongoing basis, while use will be optional until 29.12.2024. After this date – obligatory.

Until the end of 2024, we will make new plugins available on an ongoing basis with the changes in connection with Travel Rule. We will communicate their appearance with a request to install the new plugin.