Protocols in the Travel Rule Solution Explained (2025)

Crypto Travel Rule protocols are frameworks designed to help cryptocurrency businesses comply with anti-money laundering (AML) regulations. These protocols ensure the secure exchange of transaction data between virtual asset service providers (VASPs) as part of the crypto Travel Rule compliance.

Let’s check out how Travel Rule protocols work, related challenges, and why multiple protocols are an absolute must-have for a Travel Rule solution.

How do Travel Rule protocols work?

• Transaction initiation: A user initiates a transaction above the Travel Rule threshold, if one exists in the jurisdiction where the VASP operates
• Data exchange: The sending VASP collects and shares the required sender/receiver details with the receiving VASP before processing the transaction
• Verification and compliance: The receiving VASP verifies the information before completing the transaction.

Main challenges

The main challenge related to Travel Rule protocols is the lack of standardization, as different jurisdictions and VASPs use incompatible protocols, making data exchange difficult. Additionally, there are other challenges:

• Privacy and security concerns arise, as sensitive user data must be shared
• It is difficult to communicate and exchange information seamlessly
• There is a need to cross-check different systems or manually process transactions, which slows down crypto transfers
• VASPs must support multiple protocols or manually verify transactions, which increases operational burdens and expenses.

Suggested read: Travel Rule Challenges

This is why it’s important for a Travel Rule solution to support multiple protocols. 

Why is it crucial for a crypto Travel Rule solution to support as many protocols as possible?

Supporting multiple protocols helps bridge the gap between different standards, ensures smooth communication between VASPs, and maintains compliance across jurisdictions. Moreover, a multi-protocol solution saves businesses both time and money. It also provides flexibility in handling privacy and security concerns, allowing businesses to adapt to evolving regulations and technological advancements. Let’s take a closer look at the details.

1. Global regulatory compliance

Different countries have their own Travel Rule implementations and preferred protocols. Supporting multiple protocols ensures that a solution can comply with various regulations across:

• Europe (MiCA, TFR)
• UK (FCA)
• US (FinCEN)
• Nigeria (SEC)
• South Africa (FIC)
• Singapore (MAS PSN02)
• Indonesia (Bappebti)
• Switzerland (FINMA)
• Japan (JVCEA)

Without multi-protocol support, a VASP might be non-compliant in certain jurisdictions, leading to regulatory risks.

2. Interoperability between VASPs

VASPs can use different Travel Rule solutions. However, a sophisticated Travel Rule solution that supports multiple protocols can communicate seamlessly with more counterparties, reducing transaction delays and failures.

3. Higher transaction completion rate

If a VASP can’t communicate with another due to incompatible protocols, transactions may be delayed, rejected, or manually processed (which increases costs and compliance risks). Supporting multiple protocols minimizes failed transactions and lost users.

4. Broader network effect

The more VASPs a solution can connect with, the more efficient and widespread its adoption. A solution that supports multiple protocols can process more transactions with different partners without needing custom integrations.

5. Future-proofing against evolving regulations

The crypto regulatory standards are constantly evolving, and new Travel Rule protocols may emerge. A solution with multi-protocol support ensures adaptability to future regulatory changes.

Sumsub protocols

Sumsub has the biggest connectivity on the market, with 5 protocols on board, plus the email notification tool, which ensures full coverage of VASPs regardless of their location:

TRP protocol

TRP is a lean open-sourced protocol developed by Standard Chartered, ING, BitGo, and others to ensure quick and easy data transfer in accordance with the Travel Rule requirements.

Check out how TRP works at Sumsub

Sumsub protocol

Sumsub has launched its own Travel Rule protocol that lets us quickly process the data and confirm data exchange in case both VASPs are our clients.

Check out how it functions

GTR protocol

GTR is a Travel Rule protocol designed for VASPs to make secure information exchange as stipulated by Travel Rule requirements when working with transactions. GTR positioning is to create a unified blockchain security channel for VASPs.

Check out the details here

CODE protocol

CODE is a proprietary data exchange protocol developed by CODE, a Korean provider of specialized Travel Rule services for VASPs founded by the leading local virtual asset exchanges Bethumb, Coinone, and Korbit.

Learn how it works

Sygna protocol

Sumsub’s Travel Rule solution is also integrated with the Sygna Travel Rule protocol to allow its crypto and fintech clients to communicate with the VASPs in the Sygna ecosystem, particularly with those in Japan and Taiwan.

Check out the details here

Email notification tool

The email solution was developed by Sumsub to ensure that all VASPs are covered regardless of their location and Travel Rule solutions in place. If we find out that the beneficiary VASP is not in our directory of those who have implemented the Travel Rule or uses a data exchange protocol not supported by Sumsub, we contact it via email.

Here are the details

However, multiple protocols are not the only criterion of a reliable crypto Travel Rule solution.

Other benefits of Sumsub’s Travel Rule solution

• Smooth integration with other Sumsub products: Use the Travel Rule solution alongside the user verification, transaction monitoring, and AML check features for detailed transaction information.
• Unhosted wallet verification: Assesses whether the unhosted wallet is owned or controlled by the originator or beneficiary
• VASP attribution: Identifies if the virtual asset transaction is with a VASP or an unhosted wallet and establishes the counterparty VASP’s identity
• Screening against watchlists: Checks virtual asset transaction participants against global sanctions lists (OFAC, UN, HMT, EU, DFT, etc.) and adverse media
• Secure ecosystem: Provides access to the latest verification data and documentation related to other Travel Rule ecosystem members for quick transaction confirmations
• A simple solution for interoperability and sunrise issues
• Extensive functionality: Allows you to configure specific fields for data exchange to comply with regulations
• Supports over 10,000 virtual assets
• 1,700 VASPs in the ecosystem
• Crypto wallet scoring: Enables automated transaction rejection based on the wallet’s status.