If you're in the #EU and use #cryptocurrency, it's crucial to understand the impact of the Travel Rule. One key takeaway: Always withdraw your assets from centralized exchanges (CEXs) to your own self-custody wallet before sending them elsewhere. This avoids complications when transferring to non-EU entities or exchanges that aren't MiCA-compliant. Even when buying goods with crypto, the Travel Rule applies. #CryptoNews
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Before the #TravelRule, moving funds between exchanges was much easier. Now, many CEXs require users to declare the origin and destination of funds, making transactions more complex. However, #self-custody #wallets act as a buffer, simplifying compliance and ensuring smoother transfers. #cryptocurrency #moneytransfer
Read about EU Travel Rule in this article: https://notabene.id/world/eu
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For large transactions (e.g., €25,000+), #decentralized #exchanges (DEXs) remain a viable alternative. Unlike CEXs, #DEX transactions aren't hindered by European Union's Travel Rule requirements, allowing unrestricted movement of funds—assuming you're using a supported blockchain.
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Some CEXs impose extra verification steps. #OKX, for example, requires a " #Satoshi Test" for Bitcoin transfers over €1,000. This means you must send a small test amount (1-10€ worth of #BTC) from your #wallet first. If the test is successful, your full withdrawal is processed. For non-BTC transactions, verification methods vary by exchange.
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Using a #selfcustody wallet ensures faster, safer, and more predictable transfers between exchanges. Instead of sending crypto directly from one CEX to another—where withdrawals may be held indefinitely for compliance checks—it’s simpler to withdraw to your own wallet first.
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If you send funds directly from one exchange to another, additional scrutiny applies. Not only must you declare the recipient exchange, but the withdrawal can be delayed indefinitely until the sending exchange verifies that the destination account is registered in your name. If it's not MiCA-compliant, your request may be rejected. ‼️‼️‼️
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Please donate with Bitcoin: 3M1aXxv7iD6imtHgifAR8tsvgRJ8kw4irY (from self-custody wallet of course). Thank you!
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#Compliance levels vary by #exchange. Unlike #OKX or #Revolut, platforms like #WhiteBit, #ByBit, and #Gateio don’t require source-of-funds verification for incoming deposits—even amounts over €1,500. In contrast, stricter platforms demand proof of whether your crypto came from another exchange or a self-custody wallet. Be careful, you always use the self-custody wallet to move money between exchanges - Self custody wallets are the intermediate point between the exchanges.
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The Travel Rule doesn’t currently apply to #Bitcoin ATMs or on-ramp services like direct crypto purchases with a debit card. For example, someone #BTC #ATM only requires a phone number for transactions under €600. These remain viable alternatives for acquiring crypto without excessive compliance burdens.
Hopefully you have learned one new useful thing that is important to know as an EU cryptocurrency user. Follow along and always do your research.
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Edited 40d ago