At Gemini, they believe that the EU’s cryptocurrency ecosystem should incorporate essential guardrails and transparency to shield users from financial crimes and fraud.
Their commitment to regulatory compliance is steadfast, and they see adhering to the EU’s Travel Rule as a “critical step forward in fostering a secure environment for cryptocurrency transactions.”
Gemini have recently communicated with their EU and EEA users about upcoming changes to crypto transfers in line with the “requirements set forth by the EU’s Travel Rule.”
As explained in the update, this rule mandates that Virtual Asset Service Providers (VASPs), like Gemini, share information regarding both the “sender and recipient involved in any crypto transfer.”
Gemini are providing further details on the changes that will “be implemented on their platform due to the Travel Rule.”
In order to align with these new EU regulations, Gemini has collaborated with Travel Rule Universal Solution Technology (TRUST) to “enhance their platform.”
This partnership enables them to securely share necessary data with other TRUST VASPs to comply with regulatory requirements, focusing “on curtailing financial crime and fraud while prioritizing the security and privacy of our users.”
The Travel Rule sets global standards requiring financial institutions and virtual asset service providers (VASPs) to exchange “information about the senders and recipients of virtual assets.”
This regulation aims to hinder the use of cryptocurrencies for “illegal activities and increase the transparency of crypto transactions.”
Consequently, when making crypto transfers to and from Gemini, you’ll be required to provide additional information to “help prevent illegal activities by malicious actors.”
From 30th December 2024, users should expect the following changes to your experience on our platform:
- Outbound transfers from Gemini to VASPs who are not TRUST members: To ensure transparency of data, Gemini will only permit outbound transfers to other TRUST members. Gemini will block any outbound transfers to a non-TRUST VASP. You can view the full list of TRUST members here.
- Inbound transfers to Gemini from VASPs who are not TRUST members: Gemini may freeze and/or restrict users who are attempting to make inbound transfers to Gemini from VASPs who are not TRUST members. This is due to these transactions potentially missing the required information. You can view the full list of TRUST members here.
- Deposits and withdrawals from your Gemini wallet: When depositing or withdrawing from your Gemini wallet to another crypto address, we will need to request additional information from you, such as the name of the person or entity you’re sending to (for withdrawals) and the name and address of the person or entity sending to you (for deposits). This data will only be shared between the sending and receiving providers, and with no one else.
- Unsupported tokens when depositing and/or withdrawing: Only transfers of ERC-20 tokens, ETH, and BTC will be supported on Gemini. Whilst you can still freely trade and hold unsupported tokens within Gemini, we will be removing unsupported tokens from deposit and withdrawal options, with the exception of withdrawing unsupported tokens to a self-hosted wallet if preferred.
- Restriction of API transfers: It is not currently possible for Gemini to obtain the required information such as the name and address of the sender, or the name of the recipient, when transferring crypto into and out of Gemini via API transfer. Therefore, we will be disabling some features of APIs, meaning you will be unable to withdraw crypto via API. Instead, please use the Gemini app or desktop to withdraw crypto.
As clarified in the update, all other API functionalities are available.
Gemini is committed to working with regulators around the world to help the crypto industry flourish in a “compliant, sustainable, and safe manner.”
Gemini concluded that the implementation of the Travel Rule is the next step on this journey.