A concrete example
An on-chain transfer and a secure off-chain identity-information exchange can form separate parts of one workflow.
In context
Operationally, a provider needs to identify the counterpart, exchange required information through appropriate channels and handle missing or incomplete data. Do not place personal identity information directly on a public blockchain simply because the transfer itself is on-chain. Data protection and secure transmission remain relevant.
The related mechanism, visually
- 01Transfer instruction
- 02Counterparty and information checks
- 03Secure information exchange
- 04Decision and retained evidence
Read these as connected concepts, not necessarily consecutive steps.
Read the explanation
Transfer-information rules concern identifying information accompanying covered transfers between relevant parties. A blockchain address alone does not establish a person’s verified identity. Information exchange can happen through a separate secure channel; placing personal information into a public transaction is not a general solution.
Put the mechanism into context
A transfer arrives with a valid transaction hash but incomplete beneficiary information. Build separate technical and compliance status columns. Identify who reviews the missing information and how the decision is recorded.
Apply it in the workshop →What this mechanism does not guarantee
The workflow should establish the counterparty, required information, completeness and handling of missing or inconsistent data. Self-hosted addresses require assessment under the applicable rules rather than being assumed automatically prohibited or automatically outside all obligations. Protect the information throughout collection, exchange and retention.
Explore the full explanation
Travel Rule: information accompanying transfers
The Travel Rule concerns information about the originator and beneficiary accompanying covered transfers.