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Transfer Requirements (‘Travel Rule’) / KYT (Know Your Transaction) FAQs
Transfer Requirements (‘Travel Rule’) / KYT (Know Your Transaction) FAQs
Updated over a week ago

What is the Travel Rule?

The Travel Rule is a global regulation that requires Virtual Asset Service Providers (VASP) to share certain information with each other when effecting transfer of digital assets.

The Monetary Authority of Singapore (MAS) has recently incorporated the Financial Action Task Force Value Transfer Requirements (‘Travel Rule’) under the Payment Services Act (Notice PSN02) to combat money laundering and other financial crimes. In compliance with the Travel Rule requirements, Bake will be implementing new measures on funds withdrawals from 31 March 2022 onwards.

What information is required by me?

  • Deposit

    • Full legal name of originating party (i.e., sender)

    • Name of originating institution (i.e., virtual asset service provider)

    • Wallet type (custodial or non-custodial)

  • Withdrawal

    • Full legal name of beneficiary party (i.e., recipient)

    • Name of beneficiary institution (i.e., virtual asset service provider)

    • Wallet type (custodial or non-custodial)

How do I make declaration for an incoming deposit and an outgoing withdrawal?

  • Deposits:

    • You will get a notification via email and on your mobile app, that you have a pending deposit.

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Tap on the deposit you want to verify and fill in the information.

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This needs to be done with every incoming deposit.

  • Withdrawals:

    • The main difference with withdrawals is, that this only has to be done once per withdrawal address. The declaration is made when adding a withdrawal address to your whitelist. Once the address is added to the whitelist, you do not have to make any further declaration when withdrawing to that address again. Please see the procedure here: How can I add an address to my whitelist for withdrawals?

How does the Travel Rule impact the withdrawal processes?

The Travel Rule measures will not affect the overall withdrawal process. Once customers have whitelisted their addresses, they can continue to use our services as per usual.

By adhering to the Travel Rule, Bake demonstrates its commitment to delivering safe and secure products and services that prioritize the well-being and peace of mind of our customers.

How do I know if the address belongs to a private (non-custodial) wallet or a platform (custodial)?

A key difference between a private (non-custodial) wallet and a platform-owned (custodial) address is the ownership of private keys.

In a custodial setup, such as with Bake or centralized exchanges like Binance, Kraken or Coinbase, the deposit address belongs to the platform and they possess the private keys to your assets.

Conversely, private wallets like DeFiChain Wallet, Metamask, and TrustWallet are examples of non-custodial setups, where the user is solely responsible for owning the private keys and has complete control over their wallet.

How do I whitelist an address?

Will there be a limit on the amount that I can send to wallets now?

The withdrawal limit remains unchanged. As long as your withdrawal amount is higher than the withdrawal fee, there are no restrictions on the amount you may withdraw.

Why do I need to declare ownership of the address?

Bake undertakes this step to fully abide by the rules set by the Monetary Authority of Singapore (MAS). In compliance with the new requirements, Bake has been implementing new measures on funds withdrawals and deposits.

What happens to the withdrawal/deposit if there is a mistake in the information that I provide?

It is important for you to make sure that the information that you provide is correct. Otherwise, there will be a risk of your withdrawal/deposit being rejected or loss of your assets in some cases.

What happens if I do not have the information you are seeking for the receiving wallet?

This information will be required in order to proceed with the withdrawal. If you are unsure about the requirements, please contact the support of the receiving platform/wallet for further information.

Will this only be required for when depositing/withdrawing a certain amount, if so what is that limit?

This applies to all deposits/withdrawals, regardless of the amount.

Does the Travel Rule apply to all Bake users?

Yes, the Travel Rule implementation will apply to all Bake users, regardless of their jurisdictions.

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