Travel Rule Requirements: Updates to Crypto Withdrawals Interface and API

Overview 

The Travel Rule is an international regulatory framework designed to enhance transparency and security in financial transactions. It requires financial institutions and virtual asset service providers (VASPs) to collect and share specific information about the sender and recipient of crypto transactions to prevent illicit activities such as money laundering and terrorist financing.

To comply with the international Travel Rule regulations, we introduce important and mandatory updates to the withdrawals process and API functionalities. Please note, this is only the first iteration of Travel Rule updates, and additional changes are expected in the near future.

Changes in Withdrawals Interface

For users from the EEA region, additional information will now be required when making a crypto withdrawal. The following fields must be completed:

  1. Destination Platform: Specify the platform to which the funds are being sent.
  2. Receiver Type: Indicate whether the receiver is an Individual or a Legal Entity.

    • If Individual: Provide the receiver’s First Name and Last Name.

    • If Legal Entity: Provide the Entity Name and Entity Address.


These fields ensure the required information is captured during the withdrawal process, aligning with compliance standards.

The AOPP flow for the withdrawals within Travel Rule regulations

The Address Ownership Proof Protocol (AOPP) helps cryptocurrency platforms comply with regulations like the Travel Rule, which requires identifying and verifying the parties involved in cryptocurrency transactions. AOPP ensures that you, as a user, prove control of your external wallet address before withdrawing or receiving funds.

The Travel Rule usually requires crypto service providers to collect certain information (sender/recipient details) whenever transferring funds between regulated entities or user-owned addresses. AOPP streamlines that process by automating the verification of wallet ownership.

Why Is AOPP Necessary?

  • Regulatory Compliance: The Travel Rule mandates that specific data about senders and receivers is shared between financial institutions to reduce illicit activity.
  • User Experience: AOPP automates address ownership checks, reducing manual steps like screenshot uploads or signing random text strings
  • Data Accuracy & Security: By verifying the address through a cryptographic signature, AOPP ensures that your address is indeed under your control before proceeding with transfers.

Step-by-Step AOPP flow

  1. Initiate a Withdrawal or Transfer

When you want to withdraw cryptocurrency to an external wallet, you’ll start by choosing “I’m sending funds to a self-custodial wallet” and entering your wallet address as usual on our platform.

  1. Trigger AOPP Request

If your wallet is not verified yet and requires Travel Rule compliance, – you’ll see a label telling you that address is not verified. By clicking on “Verify” – system will display pop-up with message telling you to verify ownership of the wallet address. By clicking on it – you will be redirected to a separate AOPP interface.

  1. Open Your Wallet

To complete the proof, you’ll need a wallet that supports AOPP (many modern wallets have integrated AOPP).

  • If you’re using a hardware wallet, make sure it’s connected and unlocked.
  • If you’re using a mobile or desktop wallet, ensure it’s up to date and supports AOPP signing.

  1. Receive and Approve the Signing Request

The platform sends a signing request through the AOPP protocol. Your wallet will prompt you to approve or sign this request, proving you control the address.

Tip: Look closely at what you’re signing—always confirm it’s a legitimate request from our platform.

  1. Signature Validation

Once you’ve signed, the wallet sends the signature back to the platform (typically through a secure deep link or QR code).

  • The platform checks the signature to ensure it matches the public address you provided.
  • If valid, your ownership of the address is confirmed.

  1. Complete the Transfer

After a successful AOPP verification, you can proceed with the withdrawal.

  • Any required Travel Rule information (e.g., name, account ID) will be securely attached to the transaction if needed for regulatory purposes.
  • You’ll receive a confirmation message once the transfer is en route or complete.

Therefore, the AOPP flow ensures that when you withdraw or transfer cryptocurrency, you can easily prove that you own the receiving wallet address. This helps satisfy the Travel Rule’s requirement for wallet verification and identity information sharing between regulated entities. By automating key steps, AOPP reduces the manual work for you and enhances overall security for all parties involved.

API Updates: Travel Rule Object

For users utilizing the private API for withdrawals, a new “travel_rule” object has been introduced. This object must include the following parameters:

{

  "travelRule" : {

  "type": [individual, entity], // receiver type

  "vasp": <string>, // destination platform (VASP) name

  "name": <string>, // if individual - first_name ; if entity - entity_name

  "address": <string> // if individual - last_name ; if entity - entity_address

}

}

This structured data is essential for ensuring compliance with the Travel Rule when using API v4 withdrawal methods.

And here's an example of a full request body (for Travel Rule) raw for:

  1. Individual

{{

  "ticker": "BTC",

  "amount": "0.5",

  "address": "bc1qxy2kgdygjrsqtzq2n0yrf2493p83kkfjhx0wlh",

  "uniqueId": "24529046",

  "travelRule": {

    "type": "individual",

    "vasp": "Binance",

    "name": "John",

    "address": "Doe"

  },

  "request": "{{request}}",

  "nonce": "{{nonce}}"

}

  1. Legal entity

{

  "ticker": "BTC",

  "amount": "1.2",

  "address": "bc1qxy2kgdygjrsqtzq2n0yrf2493p83kkfjhx0wlh",

  "uniqueId": "24529047",

  "travelRule": {

    "type": "entity",

    "vasp": "Kraken",

    "name": "Acme Corp",

    "address": "123 Business Street, London, UK"

  },

  "request": "{{request}}",

  "nonce": "{{nonce}}"

}

For more details, please refer to the API documentation.

Why These Updates Are Necessary

The Travel Rule is an international standard requiring financial institutions and exchanges to collect and share certain information about the originators and beneficiaries of transactions. These updates ensure that we remain compliant with these regulations, fostering transparency and security across the crypto ecosystem.

Frequently Asked Questions (FAQs)

  1. What happens if I don’t provide the required information? Without the mandatory details, your withdrawal request may be delayed or rejected until all necessary fields are completed.
  2. Do these changes apply to all users? Currently, these updates apply specifically to users from the EEA region.
  3. Are these changes applied to all types of withdrawals? No, these changes are applied only to crypto withdrawals. Fiat withdrawals remain unaffected.

Support

In case of any questions related to the functionality of our exchange, you can:

  • Leave a request on our website;
  • Write to the support email: support@whitebit.com;
  • Write to the chat using the button in the lower right corner of the screen (in the upper right corner of the WhiteBIT app, click ).

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