Email from Uphold. Travel Rule?

[davis196]

So I've got this email from Uphold. This looks like yet another reason why NOT to use a centralized crypto exchange, especially if you live in the EU. I'm not even an active Uphold user. I've registered an account years ago, but failed the KYC procedure and the account is abandoned ever since. Anyone else got the same email?

Hi Uphold User,

We’re making some updates to crypto deposits and withdrawals for customers in the EU and UK to comply with new regulations related to both MiCA and the Travel Rule obligations.

What is the Travel Rule?
The Travel Rule is a regulatory requirement that asks crypto platforms like Uphold to collect and share certain information about the sender and receiver of crypto transfers. This may include names, account or wallet identifiers, and jurisdiction, where required by law.

It’s designed to make crypto transfers more transparent and help prevent misuse of digital assets.

What’s changing?
Once these changes go live, crypto deposits and withdrawals may require additional information, including:

Details about the sender or receiver of the transaction
Confirmation of whether the wallet is self-custodial, which may require additional steps, or hosted by another exchange
Transfers involving exchange wallets
If you’re sending to or receiving from another exchange:

You may be asked to provide counterparty details and select the exchange from a list
Where possible, we’ll attempt to gather the required information from supported, regulated exchanges, where permitted before requesting additional details from you*
What do you need to do now?
Nothing at the moment. When live, rest assured, the app will guide you through the process.

*In some cases, transactions may be delayed or unavailable if required information cannot be provided.

Thank you,

Team Uphold

[PX-Z]

That’s one of the downsides of regulation. You shouldn't use regulated wallets or CEX accounts to receive funds from random people or unknown P2P platform, otherwise, you risk getting your funds frozen.

They say it's for transparency and to prevent misuse of digital assets, but on a CEX everything is already tracked. Anyone trying to misuse crypto on a fully monitored platform is just plain stupid.

[Yamane_Keto]

I expect they will request a lot of data before you can withdraw and even more before adding the deposit to your balance. those changes will make it easier for scam services to operate, as they will place restrictions on withdrawals. Good services use servers that operate under the MiCA framework. Changes will be extremely disruptive.

[Potato Chips]

Yeah, I did notice EU folks have been getting grilled. I sure hope regulation in my place won't get as bad. Though, I always make sure to send and receive from my personal wallets. I was once asked for further info about my deposit on binance, I said on the form it's from my personal wallet, and was good to go.

I wonder what are the additional steps for self-custodial wallets. I don't have a good feeling about it lol.

[robelneo]

So I've got this email from Uphold. This looks like yet another reason why NOT to use a centralized crypto exchange, especially if you live in the EU. I'm not even an active Uphold user. I've registered an account years ago, but failed the KYC procedure and the account is abandoned ever since. Anyone else got the same email?

I have a similar one in our local board, where our popular local exchange asks for information about the sender. I'm not comfortable doing this because the other local exchanges aren't doing it either.

That's the risk of using a centralized exchange; they are imposing that they now act like a bank, where you need to provide all the necessary information, as if every transaction is a suspect. It's good for regulation, but you're not comfortable because it doesn't align with the essence of cryptocurrency transactions.

[BitMaxz]

It looks like the same as our local exchange here, where you need the information of the receiver's or sender's name, age, and address, which is pretty annoying when making a transaction, and I don't think the receiver is willing to give this information to you when sending the coin.
The one that hates from that email from Uphold why do they ask if the receiver or sender is using a non-custodial wallet?  

[Darker45]

I'm not an Uphold user. Neither am I living in the EU, but this same update is already implemented by certain providers here in my country. It's the same FATF travel rule that provides the overall guidance. I think this is the way to go if we stick with centralized services.

The problem I'm seeing, however, is that other than making it inconvenient for all their honest users, it doesn't stop the money launderers and terrorist financers from doing their thing. Same old, same old game of hide and seek at the expense of ordinary people.

[noorman0]

I'm wondering if the use of "Travel" has any special meaning. My perception is that this additional verification is effective for anyone in EU jurisdictions, including those currently traveling, although its implementation seems very complex.

I have a similar one in our local board, where our popular local exchange asks for information about the sender. I'm not comfortable doing this because the other local exchanges aren't doing it either.

Yep, I remember that. I read that they had revoked the rule due to various objections.

[salad daging]

It looks like the same as our local exchange here, where you need the information of the receiver's or sender's name, age, and address, which is pretty annoying when making a transaction, and I don't think the receiver is willing to give this information to you when sending the coin.

Not only your local exchange, even our local exchange if sending coins must fill in the recipient's name, recipient's address may have become a common rule in every region so this rule has been implemented several years ago.

There is no other way but to follow the existing rules, because we exchange coins to local fiat through this exchange.

The one that hates from that email from Uphold why do they ask if the receiver or sender is using a non-custodial wallet?  

These rules are too strict, UpHold is forced to follow MiCA rules so they ask if they are using a non-custodial wallet.

[BitMaxz]

Not only your local exchange, even our local exchange if sending coins must fill in the recipient's name, recipient's address may have become a common rule in every region so this rule has been implemented several years ago.

There is no other way but to follow the existing rules, because we exchange coins to local fiat through this exchange.

Well, before I was using them, but right now I have had many disappointments using them because they keep asking for KYC even though I was verified just a month ago, and my documents are not expired yet. These new rules or ways of sending crypto are annoying; I am more confident in converting my crypto to fiat via P2P Binance and other exchanges than using local exchange. What I hate more is that the local SEC here keeps banning global exchanges like Binance to force people to use local exchanges.