What is the Travel Rule?
The "Travel Rule" is a regulatory framework established by the Financial Action Task Force (FATF). It requires virtual asset service providers (VASPs) to exchange the originator's and beneficiary's identifying information off-chain whenever virtual assets are transferred on the blockchain. This enhances transaction transparency, mitigates the risks of money laundering and fraud, and strengthens user protection.
Phase 1 will take effect on October 12, 2026, covering transfers between domestic VASPs in Taiwan. Phase 2 (covering cross-border transfers between domestic and overseas platforms) is slated for implementation by the end of 2027.
Why Implement the Travel Rule Now?
When Taiwan enacted the Regulations Governing Anti-Money Laundering and Countering the Financing of Terrorism for Enterprises Handling Virtual Asset Services in 2021, provisions regarding virtual asset transfer data were already included. However, due to global differences in regulations, data formats, and system standards, an effective implementation date was not officially set at that time.
With more jurisdictions adopting the Travel Rule in recent years, alongside FATF’s 2025 update to Recommendation 16 requiring more consistent and transparent payment data, the Financial Supervisory Commission (FSC) and the Taiwan Virtual Asset Service Provider Association reached a consensus to proceed in two phases: completing integration among domestic platforms first, followed by cross-border expansion in 2027.
For users, this will introduce a few additional data-entry and verification steps in the short term, but will foster greater transaction transparency and market trust over the long term.
Implementation Timeline in Taiwan
The Financial Supervisory Commission (FSC) announced on August 4, 2026, that the Travel Rule will be rolled out in two phases:
Phase 1 (Effective October 12, 2026): Applies to virtual asset transfers between domestic VASPs in Taiwan.
Phase 2 (Expected by the end of 2027): Expands to cover transfers between domestic and foreign platforms.
Scope of Phase 1
Phase 1 applies to virtual asset transfers between domestic Taiwanese VASPs, including:
Transferring virtual assets from XREX Exchange to another Taiwanese VASP.
Transferring virtual assets from another Taiwanese VASP to XREX Exchange.
Transfers where both the originating and receiving accounts belong to you (first-party transfers).
Transfers between domestic and overseas platforms fall under Phase 2 and are expected to be implemented by late 2027.
Fiat Deposits and Withdrawals Are Unaffected
The Travel Rule strictly applies to virtual asset transfers. Fiat currency deposits and withdrawals (e.g., TWD, USD) conducted via your personal bank account remain unaffected.
Depositing Virtual Assets to XREX Exchange
When you deposit virtual assets from another Taiwanese VASP to XREX Exchange, the originating platform will transmit the required Travel Rule data to XREX. You do not need to submit additional information or take extra steps on the XREX App. This rule applies even if both the sending and receiving accounts are under your own name.
When filling in beneficiary details on the originating platform, ensure the information matches your verified details on XREX Exchange to prevent processing delays. Please follow the specific data requirements outlined on the originating platform's interface.
How XREX Exchange Processes Deposits?
Step 1: Identify Origin
XREX utilizes on-chain analytics tools to determine whether the incoming deposit originates from a Taiwanese VASP.Step 2: Reconcile Data
If the deposit comes from a domestic VASP, XREX reconciles the transaction against the Travel Rule data received from the sending platform.Step 3: Screen Originator
XREX verifies the originator’s name and source wallet address, ensuring they do not trigger risk control flags or appear on sanctions/screening lists.Step 4: Credit Account
Once verification is complete and no anomalies are found, XREX credits the virtual assets to your account.
Important Reminder
A completed transaction on the blockchain does not mean the funds have been credited to your XREX account immediately. Please allow time for the platforms to verify and process the transaction data.
Withdrawing Virtual Assets from XREX Exchange
When initiating a withdrawal via the XREX App, the system will identify whether the destination address belongs to a Taiwanese VASP. If so, the App will prompt you to provide the required Travel Rule information.
5 Operational Steps (Example: USDT, Individual Account)
Step 1: Enter Withdrawal Details
Enter the recipient address, select the blockchain network, and specify the withdrawal amount.Step 2: Confirm Beneficiary Platform
XREX will detect and display the Taiwanese VASP associated with the recipient address. Please confirm that it matches your intended destination platform. Confirming the receiving platform is also a vital measure against fraud.Step 3: Select Account Type
Select whether the receiving account belongs to an "Individual" or a "Corporate" entity.Step 4: Confirm Ownership and Fill in Beneficiary Information
If you select that the receiving account is your own, the system will automatically populate your name. If the account belongs to someone else, please manually enter the recipient's name or corporate entity name.Withdrawals ≤ TWD 30,000 equivalent:
Account type (Individual / Corporate)
Beneficiary name
Withdrawals > TWD 30,000 equivalent:
Account type (Individual / Corporate)
Beneficiary name
Beneficiary's country and city of registration or residence (For corporate accounts: official identification number, such as Unified Business Number, and registered business address)
Note: To comply with Travel Rule requirements, XREX will simultaneously transmit your name, originating wallet address, date of birth, and residential address to the receiving Taiwanese VASP. This process is handled internally by the exchange, requiring no additional input from your end.
Step 5: Complete Multi-Factor Authentication (MFA) and Submit
Important Reminders
XREX calculates whether the withdrawal exceeds the TWD 30,000 threshold based on the asset's real-time market value when entering transaction details in the App, determining the extent of required information.
XREX automatically supplies your originator information using your verified profile on file; you do not need to re-enter your details for each transaction.
If the beneficiary is not yourself, ensure the recipient name matches the registered legal name on their receiving VASP account to avoid verification failure.
What Happens After Submitting the Request?
Beneficiary Screening: The recipient’s name and wallet address are screened against internal risk control triggers and restricted entity lists.
Data Transmission & On-Chain Transfer: Once cleared, the Travel Rule data is transmitted to the receiving VASP via the domestic inter-VASP network, and the virtual assets are broadcast to the blockchain.