Updates to Crypto Transfer Procedures for UK Clients

In response to new regulations in the UK, Kraken has implemented adjustments to how we handle crypto transfers in and out of the platform, for UK-based customers. The regulations - broadly known as the Travel Rule - mandate that Virtual Asset Service Providers (VASPs) like Kraken take steps to identify counterparties that our clients transact with from time to time. Such steps include requiring us to confirm information about both the sender and the receiver for all VASP to VASP crypto transactions or, in some cases, confirm ownership information for self-hosted wallets transfers.

To facilitate these changes, Kraken has collaborated with a number of Travel Rule partners, including Travel Rule Universal Solution Technology (TRUST). This partnership leverages TRUST's technology to exchange necessary data - securely and all fully encrypted - ensuring compliance with the regulations while prioritising your security and privacy.

Understanding the Travel Rule

The Travel Rule sets standards requiring financial institutions and VASPs to exchange details about the parties involved in virtual asset transactions. Its goal is to curb the use of cryptocurrencies and other virtual assets for illicit purposes by making it harder for criminals to remain anonymous. As a result, in some circumstances you will now be required to provide additional information during your crypto deposits and withdrawals.

What Are the Changes?

When you deposit or withdraw funds to or from a self-hosted wallet, you may be asked to confirm ownership of that wallet (as Kraken only allows first-party transactions - i.e. sending crypto from one of your accounts to another). Once you’ve confirmed this once, we won’t ask you to do it again!

If you are depositing or withdrawing to another VASP, you may be asked to confirm which VASP that is, and again, confirm ownership of the wallet.

What You Need to Do

We advise all UK clients to familiarise themselves with these updates. No need to do anything else, unless you’re specifically prompted in the app.

Is my information safe?

At Kraken, we prioritise security in everything we do and we are fully committed to protecting your data. You may read our Privacy Notice for a detailed overview on how we manage personal data.