Why does Ledn ask where I'm withdrawing my crypto?
To keep your bitcoin safe and ensure smooth withdrawals, we ask about your destination when you withdraw cryptocurrency. This helps us maintain the security standards and regulatory compliance that have protected $10B+ in client assets over 7 years.
When withdrawing cryptocurrency from your Ledn account, we ask whether you're sending funds to:
Self-custody wallet - A wallet where you control the private keys (like MetaMask, Ledger, or Trezor)
Custodied wallet - A wallet managed by another service provider (like another exchange or lending platform)
Why are we collecting this information?
As Ledn pursues authorization as a crypto-asset service provider (CASP) under the EU's Markets in Crypto-Assets (MiCA) regulation, we must collect certain information for regulatory compliance. This information is required as part of the Travel Rule, a global standard that helps prevent money laundering and enhances transparency in cryptocurrency transactions.
How does this affect my withdrawal?
This information doesn't change your withdrawal experience. You still get:
Same fast processing times
Same withdrawal fees
Complete control over your destinations
No limits on amounts
You maintain complete control over where you send your cryptocurrency.
What is the Travel Rule?
The Travel Rule is a global standard that requires crypto service providers to collect basic information about transfers - similar to traditional banking. It's designed to prevent bad actors while protecting legitimate users like you, helping maintain the integrity of the financial system.
How does Ledn protect my information?
Ledn is committed to protecting your personal data:
We only collect information required by law
Your data is secured using industry-standard encryption
Information is only shared with other institutions when legally required and only for transactions between regulated entities
We adhere to GDPR and maintain strict data privacy standards
This enhanced compliance is part of how we've maintained our perfect track record of protecting client assets across 7 years and $10B+ in loans.
What if I choose the wrong option?
While we encourage accurate selection for compliance purposes, choosing the incorrect option won't prevent your withdrawal from being processed. If you're unsure:
Self-custody: You have the private keys or seed phrase
Custodied: You access it with a username/password on another platform
Do I need to provide this information for every withdrawal?
Yes, we collect this information for each withdrawal as the destination may vary between transactions.