Why Email-Based Travel Rule Solutions Fall Short

Email-based Travel Rule solutions may seem like a simple fix for compliance challenges, but they come with major pitfalls. From manual processes that buckle under heavy transaction volumes to security vulnerabilities that put sensitive data at risk, and a poor user experience that creates friction for beneficiaries, these systems leave VASPs ill-equipped to meet growing regulatory demands.

Why do email-based solutions fail to deliver?

It really comes down to three critical considerations:

1️⃣ Operational Scalability – Manual workflows can’t handle the demands of high-volume transactions.

2️⃣ Security and Privacy Risks – Email lacks the robust encryption needed to keep sensitive information safe.

3️⃣ Poor User Experience – Cumbersome processes frustrate beneficiaries and delay compliance efforts.

It's obviously more nuanced than that, so let's dive in and explore when a check-the-box email-based Travel Rule solution will suffice, and when it may be smarter to invest in building a modern, scalable operation to future-proof your Travel Rule compliance needs as your business grows.

💡 Learn more about the pros and cons of an email-based Travel Rule solution in our full article here