Why does the exchange ask who I am sending funds to?

The travel rule. Firms have to pass sender and recipient details along with transfers above a threshold.

Regulated firms are required to send identifying information about both parties alongside transfers above certain amounts — the same principle that has applied to bank wires for years, applied to crypto.

In practice you may be asked whether an address belongs to you, which platform it belongs to, or the name of the recipient. Some platforms require proof that a withdrawal address is yours, such as a signed message or a screenshot.

It is not optional for them, and refusing generally means the withdrawal does not go out. Being accurate is also in your interest: mismatched information is a common reason for funds to be held on arrival.

Thresholds and exact requirements differ by jurisdiction, and transfers to self-hosted wallets are treated differently in different places.

Travel rule and VASP define the terms.

Last checked 19 Oct 2026.