The Travel Rule in Crypto: Why It Matters and How Reown AppKit Solves It
As crypto adoption accelerates, so does regulation. One rule in particular is reshaping how onchain apps handle compliance: the Travel Rule.
Originally designed for banks, the Travel Rule now applies to many crypto transfers across the globe. Regulated providers that send funds across wallets or platforms may fall under its scope, whether you realize it or not.
But here’s the challenge: most Travel Rule solutions use outdated Web2 solutions for a Web3 system. They add friction, break flow, and slow down shipping. For onchain teams, that’s a dealbreaker.
Reown’s AppKit changes that.
It delivers the best solution for Travel Rule compliance and is 0% disruptive. All inside the same in-app signature experience your users already expect. No redirects. No new vendors. No missed deadlines.
Let’s break down why this matters and how it works.
What is the Travel Rule in crypto?
The Travel Rule is a global anti-money laundering (AML) standard that is implemented by regulators worldwide. It requires financial institutions to share identity information for transactions over a certain threshold.
In the crypto world, regulators now apply it to VASPs and CASPs, Virtual/Crypto Asset Service Providers, like centralized exchanges, trading platforms, and custodians.
And compliance isn’t optional. Travel Rule violations can result in fines, service restrictions, or jeopardize necessary licenses and registrations, especially in jurisdictions like the EU, Singapore, and the UK.
Why the Travel Rule is a UX (and dev) nightmare?
Here’s what most Travel Rule implementations require:
- Identity data collection, verification, and exchange
- Logging and secure storage of info in an auditable format
For traditional financial services, that’s table stakes. But for onchain teams, it’s a UX minefield. Nobody wants to interrupt a smooth flow with clunky compliance modals or external KYC vendors.
And from a product standpoint, Travel Rule builds are costly. They eat time, delay launches, and distract engineers from core features.
That’s where Reown AppKit comes in.
How does Reown AppKit handle Travel Rule compliance without adding friction?
AppKit from Reown is the fastest way to deliver compliant crypto flows without sacrificing experience. Travel Rule support is built directly into the Reown AppKit SDK.
Here’s how it works:
When a transaction triggers Travel Rule criteria, Reown AppKit surfaces a native in-app notification. The user signs a message to confirm their agreement and proceed.
Everything else, data formatting, routing, and logging, is handled under the hood. Just one-click clarity.
This isn’t just easier for users. It’s a game-changer for developers:
- Ship faster with built-in Travel Rule logic
- Avoid third-party integrations or custom flows
- Future-proof your app for global regulatory change
Why Reown Enables Travel Rule Compliance by Design
Reown AppKit is built on WalletConnect, giving custodians, institutions, and developers a compliant, low-friction path to meet global Travel Rule requirements. Here's how:
- Private keys stay protected: WalletConnect never exposes wallet private keys, ensuring institutions maintain full control and security over customer assets.
- Encrypted wallet connections: All app-to-wallet communication is end-to-end encrypted, helping meet global data privacy and protection standards.
- No custody, no added risk: WalletConnect doesn’t hold or transmit assets—it simply connects apps and wallets without introducing third-party risk to fund flows.
- Travel Rule compliance, built in: Reown AppKit enables 1-click user authorization, allowing teams to fulfill Travel Rule obligations without adding UX friction.
- Audit-ready session data: WalletConnect generates cryptographically verifiable metadata for every session, supporting transaction monitoring and internal audit needs.
- Flexible to your stack and rules: Reown AppKit is customizable to fit any institutional policy or regulatory framework, whether you're managing payments, withdrawals, or KYC flows.
Why Noah Chose Reown AppKit for Travel Rule Compliance and Wallet Verification?
Noah provides global payments infrastructure for businesses, combining stablecoins and local rails to enable instant, compliant settlement across 70+ currencies, all through one API and an intuitive dashboard. With support for real-time transactions, cross-border payouts, and automated treasury flows, Noah is built for global scale.
Businesses use Noah to power a wide range of use cases, from real-time remittances to global payroll, supplier payments, and treasury automation. Whether sending funds to freelancers in LATAM, settling payouts in USDC, or converting stablecoin into local currency, Noah offers the speed, coverage, and compliance that modern financial operations require.
A critical part of Noah’s product strategy is enabling self-hosted wallet withdrawals. But to stay compliant with the evolving Travel Rule regulations, Noah had to find a solution that validated wallet ownership, without breaking the flow or adding legal risk.
That’s where Reown AppKit came in.
Under the EU Travel Rule and similar regimes across the globe, any crypto transfer or withdrawal over €1,000 to a self-hosted wallet requires proof of ownership. For Noah, this meant building a wallet verification system that could handle compliance, protect user privacy, and still feel seamless in the product experience.
With Reown AppKit’s support for SIWX, users can sign a message directly in-app to prove they control the destination wallet. No additional steps. No redirects. Just a smooth signature flow that captures all the necessary data to meet regulatory requirements. This helps Noah remain Travel Rule compliant while preserving a fast, familiar experience for its users.
Beyond compliance, Reown AppKit also gave Noah a huge operational edge. Its out-of-the-box support for 500+ wallets meant Noah didn’t have to build or maintain custom wallet connection logic. That saved months of engineering time and ensured coverage across the wallets their users already trusted.
With one Reown AppKit integration, Noah:
- Re-enabled withdrawals to self-hosted wallets in a compliant way
- Improved UX by avoiding clunky ownership checks or forced KYC flows
- Avoided building internal wallet verification infrastructure
- Reduced risk while increasing speed to market
As regulatory expectations grow across regions, more teams are facing the same problem: how to keep crypto withdrawal flows simple, secure, and compliant. Noah’s team found their answer in Reown AppKit.
If you're navigating Travel Rule compliance for wallet-based products, AppKit offers a proven, developer-friendly path forward. This feature is exclusive to AppKit Enterprise customers, such as Noah.
One integration. End-to-end peace of mind.
With Reown AppKit, you don’t need to choose between compliance and conversion. You get both.
What Reown AppKit delivers:
- Native Travel Rule prompts with clean UX
- Full support across wallets, chains, and jurisdictions
- The best experience for your users.
And because Reown AppKit is part of Reown’s full SDK stack, you can combine Travel Rule compliance with:
- Wallet connections (500+ supported)
- Embedded payments and onramps
- Analytics for growth and conversion
- Secure session management
Reown makes compliance usable, scalable, and developer-first
Crypto compliance doesn’t have to slow you down.
Reown AppKit lets you meet the world’s most demanding regulatory standards with flows that feel fast, modern, and invisible to users.
If your app handles crypto payments, swaps, or transfers, especially cross-platform or wallet-to-wallet, you may need a Travel Rule solution. Reown AppKit is the simplest, most scalable option on the market.
Available exclusively for Reown AppKit Enterprise
Wallet verification and built-in Travel Rule compliance are available as part of the Reown AppKit Enterprise offering. This ensures that teams handling sensitive flows like cross-wallet withdrawals, onchain payments, or large-volume transfers get the security, support, and customization they need, without adding compliance risk. Enterprise access includes advanced wallet support, priority SLAs, and deeper integration capabilities for regulated environments.
Get started with Reown today.
Ready to integrate compliant crypto transactions in minutes?
Explore Travel Rule support in the Reown Docs, or head to the Reown Dashboard to start building with AppKit.
Contact Sales today to get started on Reown AppKit for Travel Rule
Build faster. Stay compliant. Keep your UX intact.
