The Travel Rule, a key initiative by the Financial Action Task Force (FATF), designed to combat money laundering and terrorist financing. The core purpose of the Travel Rule is to boost the transparency and security of financial transactions globally, to ensure these transactions aren't exploited for illicit purposes.

Specifically, for crypto assets, it mandates the collection and transmission of necessary names and account details of all parties involved in crypto transfers between centralized crypto-asset businesses. This means that full transaction details, including the personal information of the involved parties, must "travel" with the funds through all intermediaries facilitating the transaction. 

The Travel Rule serves as a crucial regulatory measure that is vital for the integrity and safety of the financial system. Its primary purpose is to combat financial crimes, specifically money laundering and terrorist financing. By mandating the collection and sharing of transaction information, the Travel Rule enables law enforcement to trace illicit crypto funds.

Compliance with the Travel Rule is a mandatory requirement for all crypto-asset service providers operating in regulated markets. By adhering to these regulations, Bullish plays a vital role in contributing to the overall integrity of the financial system. This commitment fosters greater trust and creates a safer and more credible environment for all our participants.  

For crypto transfers (deposits and withdrawals), you will be required to provide additional information depending on whether the transaction involves a self-hosted personal wallet or an exchange-hosted wallet.

A hosted wallet, also referred to as an exchange wallet is one where your crypto address is owned by another exchange. Your deposit address with Bullish is an example of a hosted wallet address.

For deposits, we will first try to gather the necessary information about the originator of the transfer by contacting the operator of the exchange. If we are unable to obtain this information from the exchange, we will ask you as our customer to provide the sender details.

For withdrawals, you may be required to input the name of the exchange when adding a hosted withdrawal address destination. For more information see managing your wallet addresses.

1. In the History view, select Deposits & Withdrawals.

2. For each deposit transaction, select certify on the far right of the screen.

3. You will be prompted to select if the deposit transaction is coming from a hosted or self-hosted wallet address.

4. If the deposit is coming from a hosted wallet, ensure you select the exchange that is used.

5. If the deposit is coming from a self-hosted wallet, certify the details are correct.

6. Check the tick box to confirm the details are correct.

A self-hosted wallet, also known as a personal wallet, is one that you own and control directly, meaning you hold the private keys.  

To comply with local regulations, applicable customers will be required to confirm ownership of the self-hosted wallet to which you're sending funds. 

At Bullish, this is done through a wallet verification test, also known as a Satoshi test. This involves a small deposit to verify ownership of the self-hosted wallet.

How to perform a wallet verification test at Bullish

For applicable customers, you will be guided through the verification process when you initiate your first deposit from a new self-hosted wallet.

1. Start Your Deposit: Select the cryptocurrency you wish to deposit and choose the "Self-hosted wallet" option.

2. Enter Wallet Details: Select "New wallet" then provide a nickname for the wallet, the wallet's public address, and the deposit amount. 

3. Receive Verification Amount: Bullish will calculate a small, unique verification amount and add it to your intended deposit amount. The final, total amount will be displayed.

4. Complete the Transaction: From your self-hosted wallet, send the exact total amount to the Bullish deposit address provided. You must complete this transaction within 24 hours.

For successful verification, ensure you send the exact amount from the correct wallet address within the specified timeframe. Once confirmed, your wallet will be marked as "verified," and your deposit will be processed. You can view all verified wallets in your account settings. 

How to withdraw to a self-hosted wallet

You can only withdraw to a previously verified self-hosted wallet.

• If your wallet is already verified, simply select it from the dropdown list when making a withdrawal.

• To withdraw to a new self-hosted wallet, you must first verify it by completing the deposit and wallet verification process described above.