Paxos Changes to Crypto Deposits and Withdrawals for PTE Customers
In accordance with regulatory expectations, Paxos will be making changes to crypto deposits and withdrawals to and from some Paxos accounts. This will only impact customers of Paxos Global PTE Ltd and takes effect on May 14, 2024. If this is applicable to your account, you should have received an email from Paxos notifying you of the upcoming changes.
This will not affect a customer's experience of buying and selling crypto on Paxos, or send/receive transactions between two Paxos exchange accounts.
Overview of the Travel Rule
The Financial Action Task Force (FATF), a global international anti-money laundering and counter-terrorist financing watchdog, recommends that member nations adopt value transfer requirements known as the Travel Rule. Travel Rule is a set of guidelines designed to prevent money laundering and terrorist financing. It relates to the gathering and transmission of required names and account details of the parties involved in cryptocurrency transfers between financial institutions, either during the transaction or prior to it. The changes Paxos is making relate to Travel Rule-related regulatory expectations.
Depositing Crypto Assets into Paxos
On May 14, 2024, you will be required to provide additional sender information for crypto deposits to your Paxos account before it can be accepted.
How will this process look?
You will be able to provide the sender information after you log in to your Paxos account, and must provide this information within one month of receipt. If this information is not received, your deposit will not process as requested, and you may lose access to these funds.
- Navigate to the Wallet tab at the top of the page.
- Select the Activity tab
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You will see your crypto deposit with a status of NEEDS INFO
- Select Resolve to provide the Sender information.
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Please select either Individual or Institution for Sender Type.
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Individual
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Institution
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Individual
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If you cannot provide a name, or do not want to accept this deposit, you can Reject the transfer. Please note once you reject the transfer these funds will no longer be available to you.
Note: Paxos will be adding support to this workflow via API in the near future. This article will be updated with the API workflow instructions.
Is there a timeframe for me to provide the sender information?
You must provide this information within one month of receipt of the deposit.
What happens if I do not provide the sender information within one month?
A hold will be placed on your crypto deposit if there is no information provided on the sender information. To release the hold on your crypto deposit, you will need to contact us here for further assistance.
How long will it take for my deposits to be processed?
After we receive the sender information for a deposit, processing will usually happen the same day.
Withdrawing Crypto Assets outside of Paxos
On May 14, 2024, crypto withdrawals will be disabled unless you are withdrawing to a wallet address hosted by certain crypto exchanges or platforms.
If the exchange or platform that you are intending to withdraw to can be found here and is listed as 'In-Network', you will likely be able to withdraw crypto to them (however we cannot guarantee this in every case, as some addresses might not be registered by the exchange or platform).
To guarantee access to these funds off platform, we recommend withdrawing them before May 14, 2024.
Can I withdraw crypto to my private wallet?
You will only be able to make crypto withdrawals to the list of supported exchanges at this point. Paxos will be adding support to validate private wallet addresses that you own in the near future to enable withdrawals to these wallets. This article will be updated with instructions once this capability becomes available.