Deposit and Withdrawal Travel Rule Guide

Cryptocurrency
First published
March 22, 2022
Last updated
June 21, 2022

As per the Financial Action Task Force (FATF) recommendation, the Monetary Authority of Singapore has given effect to the Travel Rule under the Payment Services Act by incorporating the Value Transfer requirements in the MAS Notice PSN02 on Prevention of Money Laundering and Countering the Financing of Terrorism – Digital Payment Token Service.  

All payment service providers, including Hodlnaut, must comply with the requirements. In this guide, we share the steps you need to follow to deposit and withdraw funds from Hodlnaut while complying with the Travel Rule. Before we take a look at the steps, let’s understand what VASP means. 

What is a VASP?

A virtual asset is a digital representation of value that can be digitally traded, or transferred, and can be used for payment or investment purposes. 

As per FATF's definition, a Virtual Asset Service Provider (VASP) engages in certain activities involving virtual assets, including but not limited to: 

  • the exchange between virtual assets and fiat currencies;
  • the exchange between one or more forms of virtual assets;
  • transfer of virtual assets

This definition means that most global exchanges that you are familiar with would be classified as a VASP.

In Singapore, the term Payment Service Provider is used to refer to holders of a payment services license that carry on a business of providing digital payment token service.

Examples of Platforms that are not VASP

Non-VASP includes hardware wallets such as Ledger Nano, Trezor, and Trust Wallet. It also includes private hot wallets such as Metamask.

Step by Step Guide to Deposit to Hodlnaut While Complying With Travel Rule

This guide will provide you with the steps needed to deposit only if you are withdrawing from a VASP that supports Sygna Hub. The deposit flow remains the same (for now) if you are depositing from other platforms that do not support Sygna Hub or from non-VASP wallets.

1. Login to Your Hodlnaut Account 

Visit https://www.hodlnaut.com/ and log into your Hodlnaut account. 

2. Click on the Deposit/Withdrawal Tab 

Click on the Deposit/Withdrawal tab and choose the coin that you would like to deposit. 

3. Scroll Down to the Via Sygna Hub Tickbox 

If the exchange integrates with Sygna Hub, then you need to fill up the User and VASP Code on the platform that you are withdrawing from. You can copy the User and VASP Code from Hodlnaut and paste it on the platform to withdraw from their platform to Hodlnaut.  

Note: Check the “Via Sygna Hub” tickbox only if you are withdrawing from a VASP that supports Sygna Hub. 

4. Check the Via Sygna Hub Tickbox

Check the Via Sygna Hub tickbox and you can view the User code as well as the VASP code. To proceed with the deposit, paste the User and VASP code on the platform and complete the withdrawal from the VASP. 

With these simple steps, you can deposit to your Hodlnaut account while complying with the Travel Rule. However, if the originator VASP does not support Sygna Hub then you can deposit your funds without checking the tickbox as shown below. 

To learn more please check the guide here

Step by Step Guide to Withdraw from Hodlnaut While Complying With Travel Rule

This guide will provide you with the steps needed to withdraw while complying with the travel rule. Let’s take a look. 

1. Login to your Hodlnaut Account 

Go to https://www.hodlnaut.com/ and log in to your Hodlnaut account. 

2. Go to Deposit/Withdrawal Tab 

Click on the Deposit/Withdrawal tab and scroll down to the withdrawal section. 

3. Select the Coin You Want to Withdraw 

Choose the cryptocurrency you wish to withdraw and enter the details like the Destination, Recipient’s name, Wallet address, and the Amount. To choose the destination, scroll down through the list of exchanges and pick the one where you want to withdraw the funds (Note that this field is mandatory). 

If the platform that you are withdrawing to is not listed here, please choose “Others”. If you are withdrawing to a private wallet, please choose “Private Wallet”.

Note: In case the VASP you are withdrawing to supports Sygna Hub then you need to populate the Recipient's Name with the User code. The user code can be found on the platform you are withdrawing to as shown below. 

This view is the view of the platform you are withdrawing to.

4. Enter the Details and Submit Your Request 

To comply with the Travel Rule, you are required to enter details such as the Destination, Recipient’s name, the Wallet address, and Amount, and then click on the submit button. 

5. Key in the 2FA Code to Withdraw Funds 

You will get a prompt to enter the 2FA code in order to confirm the withdrawal. After entering the 2FA code, you can click on “Withdraw Funds” and you will receive an email confirmation for the same. Next up, approve the request via email, and your withdrawal will be processed. 

With these easy steps, you can withdraw funds while complying with the Travel Rule. 

FAQs

Here are some commonly asked questions with their answers about the Deposit/Withdrawal Travel Rule Guide. 

1. What if the exchange I am withdrawing from does not have a place for me to paste the code?

This means that the exchange does not support Sygna Hub. You can proceed with the deposit as usual. 

2. Is there a list of platforms that use Sygna Hub so that I know whether or not I have to provide this code?

We do not provide the list. You can tell if the VASP supports Sygna Hub if they indicated it on their deposit/withdrawal page. 

3. What happens if I don't check the tickbox or have no place to paste the code? Does that mean I can't deposit and cannot use Hodlnaut?

If you have no place to paste the User and VASP code on the platform you are withdrawing from, you can deposit into Hodlnaut as usual. 

In case you have any further queries, feel free to reach out to us atsupport@hodlnaut.com and we will be happy to assist you.

Disclaimer: By using Hodlnaut, users expressly acknowledge and agree to the Terms of Use listed on our website at www.hodlnaut.com. This includes the relevant risk warnings applicable to you as a user of Hodlnaut's services, prior to/when carrying out Digital Payment Token (DPT) transactions. This article is for informational purposes only, and is not an offer nor a solicitation to invest in DPT, securities, funds, partnership interests or other investments or funding or purchasing loans. It is the user's sole responsibility to conduct due diligence and research extensively into each DPT and platform, and understand that the volatility and unpredictability of the price of DPT may result in significant loss over a short period of time. No information on Hodlnaut should be considered to be business, legal, financial or tax advice regarding the use of Hodlnaut. Users should consult their own legal, financial, tax or other professional advisors before using Hodlnaut. Please refer to our website at https://www.hodlnaut.com/tos for the full Terms of Use.

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