1. What is the Travel Rule?
The Travel Rule is a global regulation that requires Virtual Asset Service Providers (VASP) to share certain information with each other when effecting transfer of digital assets.
The Monetary Authority of Singapore (MAS) has recently incorporated the Financial Action Task Force Value Transfer Requirements (‘Travel Rule’) under the Payment Services Act (Notice PSN02) to combat money laundering and other financial crimes. In compliance with the Travel Rule requirements, Cake DeFi will be implementing new measures on funds withdrawals from 31 March 2022 onwards.
2. How does the Travel Rule impact the withdrawal processes?
The Travel Rule measures will not affect the overall withdrawal process. Once customers have whitelisted their addresses, they can continue to use our services as per usual.
By adhering to the Travel Rule, Cake DeFi demonstrates its commitment to delivering safe and secure products and services that prioritize the well-being and peace of mind of our customers.
3. How do I know if the address belongs to a private (non-custodial) wallet or a platform (custodial)?
A key difference between a private (non-custodial) wallet and a platform-owned (custodial) address is the ownership of private keys.
In a custodial setup, such as with Cake DeFi or centralized exchanges like Binance, Kraken or Coinbase, the deposit address belongs to the platform and they possess the private keys to your assets.
Conversely, private wallets like DeFiChain Wallet, Metamask, and TrustWallet are examples of non-custodial setups, where the user is solely responsible for owning the private keys and has complete control over their wallet.
4. How do I whitelist an address?
If you're using a new address, you need to provide the name of the person who owns the wallet address and specify if it's a custodial or non-custodial address. If it's a custodial address, you also need to provide the name of the platform. If the platform is not listed, you can choose "Other" and enter the name in a text box.
If you have previously whitelisted a wallet address on your Cake DeFi profile, you can update the details of that address when making a withdrawal as well.
Click on the "Rename" button and provide the following information:
- The name of the person who owns the wallet associated with the address.
- Whether the address belongs to a platform or a private wallet.
- If the address belongs to a platform, enter the name of the platform. If the platform is not listed, choose "Other" and enter the platform name in a text box.
To confirm the updated information, you will need to provide multi-factor authentication (MFA). Please note that you cannot edit the actual withdrawal address, only the label for the address.
5. Will there be a limit on the amount that I can send to wallets now?
The withdrawal limit remains unchanged. As long as your withdrawal amount is higher than the withdrawal fee, there are no restrictions on the amount you may withdraw.
6. Why do I need to declare ownership of the address?
Cake DeFi undertakes this step to fully abide by the rules set by the Monetary Authority of Singapore (MAS). In compliance with the new requirements, Cake DeFi will be implementing new measures on funds withdrawals from 31 March 2022 onwards.
7. What happens to the withdrawal if there is a mistake in the information that I provide?
It is important for you to make sure that the information that you provide is correct. Otherwise, there will be a risk of your withdrawal being rejected or loss of your assets in some cases.
8. What happens if I do not have the information you are seeking for the receiving wallet?
This information will be required in order to proceed with the withdrawal. If you are unsure about the requirements, please contact the support of the receiving platform/wallet for further information.
9. Will this only be required for when withdrawing a certain amount, if so what is that limit?
This applies to all withdrawals, regardless of the amount.
10. Does the Travel Rule apply to all Cake DeFi users?
Yes, the Travel Rule implementation will apply to all Cake DeFi users, regardless of their jurisdictions.
11. Are there any reporting requirements from your side to the government on this rule?
No, you do not have to report anything to the government.