When you send crypto in the UK, the Travel Rule UK, a regulatory requirement tied to the Financial Action Task Force (FATF) that forces crypto platforms to share sender and receiver info on transfers over £1,000. Also known as FATF Recommendation 16, it’s not optional — it’s enforced by the UK’s Financial Conduct Authority (FCA). This isn’t just about big exchanges. If you’re using any platform regulated in the UK, your transaction details — name, address, wallet address — can be shared with another platform, even if it’s overseas. That means your crypto transfers aren’t as anonymous as you might think.
The FATF Travel Rule, a global standard created to prevent money laundering and terrorist financing through digital assets. Also known as FATF Recommendation 16, it has been rolling out since 2020, but the UK made it official in 2023. Unlike some countries that gave platforms years to comply, the FCA pushed for immediate action. Now, any UK-based crypto business — whether it’s Binance, Coinbase, or a small DeFi gateway — must collect and pass on user data for transfers above £1,000. This includes peer-to-peer transactions routed through regulated platforms. If you’re sending crypto to a friend in Germany or a DeFi protocol in the US, and your platform is UK-regulated, your info travels with it.
That’s where the AML crypto, anti-money laundering measures that require crypto platforms to verify users and track transactions to stop illegal activity side kicks in. The Travel Rule UK isn’t just about tracking — it’s about accountability. Platforms now need to know who you are before you can send large amounts. That’s why many UK exchanges now require full ID verification even for small deposits. And if you’re using an unregulated exchange, you might find yourself blocked from sending funds to UK wallets. The rule isn’t just changing how platforms operate — it’s changing how users behave. People are starting to split large transfers into smaller chunks, or use non-KYC wallets, but those moves come with their own risks.
Some platforms are pushing back. A few DeFi tools claim they’re "decentralized" and therefore exempt. But the FCA doesn’t care about the label — if you’re operating in the UK, you’re subject to the rules. That’s why you’ll see more platforms blocking UK users entirely, rather than trying to comply. Meanwhile, legitimate exchanges are building systems to auto-share data with other compliant platforms. It’s messy, but it’s here to stay.
What you’ll find below are real examples of how this rule plays out: which exchanges comply, which scams exploit confusion around it, and how users in the UK are adapting — or getting caught out. No theory. No fluff. Just what’s actually happening on the ground.
VASP registration in the UK is mandatory for crypto businesses targeting UK customers. Learn the 2025 requirements, application steps, Travel Rule rules, and why most applications fail-and how to avoid it.
