How does the Travel Rule work for NiceHash users?

With the implementation of the Travel Rule, depositing and withdrawing funds now requires additional compliance measures. Transactions may be withheld until all the required Travel Rule data is provided and verified. This means that when sending funds from an external wallet or counterparty Virtual Asset Service Provider (VASP), Nicehash and/or the users must ensure that the sender's and beneficiaries' information, such as name and address, accompanies the transaction. We will review and confirm this data before crediting the deposit to the user's account or sending withdrawals. While these steps enhance security and regulatory adherence, they may introduce delays, particularly if the necessary information is incomplete or incorrect.

When adding or modifying a withdrawal address, the user has three options, which follow the regulatory guidelines: I'm using Travel Address, I'm not using Travel Address, and Self-custodial Wallet.

I'm using Travel Address.
Used when a user has received a Travel Address from counterparty VASP, which supports Travel Rule Protocol (TRP). In addition, the user must provide the name of the recipient. Currently available only for sending between NiceHash addresses.

I'm not using Travel Address.
If counterparty VASP does not support Travel Rule Protocol/ does not offer Travel address, select the destination VASP from the drop-down menu. If your desired VASP is missing, please contact our Support.

Self-custodial Wallet.
Select this option when sending funds to self-custody wallets (e.g., Trezor, Ledger,…). Wallets can be verified using blockchain message signing or visual proof. All transactions will be withheld until the wallet is verified.

The Wallet Signature Proof uses a protocol for signing the message with the help of the ledger. Nicehash has to check and verify the visual proof. We recommend the use of Wallet Signature Proof when possible.

Receiving deposit transactions without necessary Travel Rule data will be withheld until all the necessary data is provided. The user will be notified using the selected notification channel (Push notification, email, etc.).

To resolve withheld transactions use the button Resolve Travel Rule Data.

The withheld transactions can be resolved on our platform by using two options:

Transaction was sent from VASP or Transaction was sent from self-custodial wallet