Difference Between Sunrise Problem and Interoperability Problem for Sumsubers, and the Importance of Being Aware
In the ever-evolving world of Virtual Asset Service Providers (VASPs), two significant challenges have emerged in implementing the Crypto Travel Rule: the Sunrise problem and the Interoperability problem.
The Sunrise problem arises from the uneven implementation of Travel Rule regulations across jurisdictions. This staggered adoption leads to compliance gaps and transition issues as VASPs dealing internationally face counterparties subject to different regulatory timelines and standards, creating uncertainty and compliance risk during the transition phase.
On the other hand, the Interoperability problem stems from the lack of technical standardization and compatibility among VASPs' compliance solutions and protocols. This fragmentation makes it difficult for VASPs to reliably and securely share required information across different platforms and jurisdictions, impeding the smooth, unified execution of the Travel Rule.
As of July 2025, while the Sunrise problem is a recognized issue stemming from uneven regulatory adoption across countries, the Interoperability problem is currently the main challenge for VASPs striving to be Travel Rule compliant. The lack of technical interoperability between compliance solutions and protocols remains the biggest obstacle preventing effective and transparent implementation of the Travel Rule on a global scale.
To address these issues, Sumsub's Travel Rule Solution has been designed with full interoperability in mind, integrating with all the protocols that are open to protocol-level integration: GTR (Binance), Code, Sygna, TRP (P2P). This integration allows messages to travel across different networks, enabling VASPs to communicate effectively and comply with the Travel Rule.
The Sunrise issue was most relevant when countries enforcing TR regulations were in the minority compared to those not enforcing them. However, as more countries begin to enforce the Travel Rule, the focus is shifting from the Sunrise issue to the Interoperability problem.
To help VASPs navigate these challenges, Sumsub is offering a free Travel Rule course starting on October 3, 2024. The course is designed to accommodate all experience levels and diverse backgrounds, providing downloadable guides with each module, quizzes to measure progress, an exclusive invite to the live Ask Me Anything (AMA) session, and a course completion certificate. The course covers the Sunrise problem, Interoperability, and other issues relevant to VASPs.
Regardless of the protocol a VASP chooses to work with, it can access the combined network of over 500 connected VASPs globally. However, integrating with multiple protocols and supporting two or more solutions can be highly inefficient. The Interoperability problem can be summarized as "Your counterparty VASP is compliant, so is willing to exchange Personally Identifiable Information (PII), but uses a Travel Rule solution or protocol which your VASP are not integrated with."
In conclusion, the Interoperability challenge outpaces the Sunrise issue in urgency and impact for VASPs aiming for Travel Rule compliance today. As the crypto industry continues to evolve, addressing the Interoperability problem will be crucial for ensuring a seamless, secure, and compliant global digital economy.
[1] Source: Interoperability in Crypto Travel Rule Compliance: Challenges and Solutions [2] Source: Understanding the Sunrise Problem in Crypto Travel Rule Compliance
- In the context ofVirtual Asset Service Providers (VASPs) striving for Travel Rule compliance, the Interoperability problem, stemming from the lack of technical standardization among compliance solutions and protocols, is currently the main challenge, as it hinders smooth, unified execution and effective implementation of the Travel Rule on a global scale.
- To support VASPs in their education-and-self-development journey towards Travel Rule compliance, Sumsub offers a free course starting on October 3, 2024, covering essential topics such as the Sunrise problem, Interoperability, and more, equipping VASPs with the knowledge needed to navigate today's significant business, technology, and finance issues in the realm of virtual assets.
