Travel Rule Compliance Guide for Hotcoin Users

Domande frequenti

/Other topics (protocol related)/Platform Support/

Hotcoin

condividere

1. What is the Travel Rule?

The Travel Rule is a global Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) regulatory requirement.

When you transfer crypto assets, exchanges may be required to verify and securely share essential information about the transaction originator and beneficiary in certain regulated scenarios, in order to ensure transaction security and regulatory compliance.

2. Who may be affected?

Travel Rule compliance checks may be triggered under the following conditions:

You are a Korean user
The transfer counterparty is a Korean exchange (VASP)
A single transaction amount reaches KRW 1,000,000 or more
The deposit or withdrawal involves another regulated exchange platform

3. APP Deposit Instructions

Applicable Scenarios

Deposits from another exchange (VASP) to Hotcoin
Deposits from a personal self-hosted wallet (Hotcoin feature upgrade in progress)

Steps

Open the Hotcoin APP → Deposit
Select the cryptocurrency and network
Complete the transfer according to on-screen instructions (Recipient information lookup may be supported)
The system will automatically perform compliance checks if applicable

Result Status

✅ Approved: Funds are credited successfully
⏳ Pending: Status shows “Processing / Waiting for confirmation”
❌ Failed: Funds may be delayed, returned, or sent for review

4. APP Withdrawal Instructions

Applicable Scenarios

Withdrawals to another exchange (VASP)
Withdrawals to a personal self-hosted wallet (Hotcoin feature upgrade in progress)

Steps

Open the Hotcoin APP → Withdraw
Select withdrawal type: Exchange / VASP
Enter recipient details (e.g., beneficiary name, address source)
Submit the request

Important Notice

If the amount is ≥ KRW 1,000,000, or
If the recipient is a Korean VASP,
the system will mandatorily apply Travel Rule compliance checks.

5. What information is required?

In regulated scenarios, you may be required to provide:

Beneficiary name
Recipient wallet address
Address source type (selecting the VASP exchange)

Please ensure that all information matches the records of the receiving platform.

6. What if verification fails?

Common error messages include:

Name mismatch
Address source mismatch
Recipient platform not supported

You may:

Correct the information and resubmit
Cancel the transaction
Follow on-screen instructions for next steps

7. How is my personal information used?

Information is used only for compliance verification
Data is encrypted and shared only between Hotcoin and the counterparty VASP
Information will not be used for any other purpose or shared with unrelated third parties

8. What happens if verification fails multiple times?

The transfer may be rejected or delayed
Funds may be temporarily held or returned
In high-risk cases, the platform may restrict related transactions