Cryptocurrency regulations are getting stricter and regulators aren’t hesitating to hand out fines adding up to millions when exchanges, wallets, and other virtual asset companies aren’t compliant. Understanding exactly who uses your platform, and where they’re (really) based, is the first step to understanding which rules and sanctions apply to each transaction. But how do you reliably find that information?
In this report, you will learn how to:
1. Block users in high-risk or sanctioned jurisdictions
2. Spot VPN use and other regulatory red flags (expert tip: IPs are very easy to manipulate)
3. Strengthen KYC verification without adding friction
4. Support the fight against financial crime
5. Attract and protect banking and payments partners
Crypto businesses face several compliance pain points due to the regulatory uncertainty and the rapidly evolving nature of the crypto industry. Some of the biggest compliance pain points for crypto businesses include:
- Anti-Money Laundering (AML) Compliance: Cryptocurrencies have been associated with money laundering and other financial crimes, which makes AML compliance a top priority for crypto businesses. AML compliance requires businesses to have effective customer due diligence procedures, transaction monitoring, and reporting suspicious activities to regulatory authorities.
- Know Your Customer (KYC) Compliance: KYC compliance is an essential part of AML compliance, and it requires businesses to verify the identity of their customers and conduct ongoing monitoring of their activities. KYC compliance can be challenging in the crypto industry, where customers can remain anonymous, and transactions can be conducted quickly and globally.
- Data Privacy Compliance: Cryptocurrencies involve the collection, processing, and storage of personal information, which makes data privacy compliance a critical issue for crypto businesses. Data privacy compliance requires businesses to comply with data protection laws and ensure the security of their customers’ personal information.
In summary, crypto businesses face several compliance pain points, and they need to prioritize compliance to avoid legal and regulatory risks.
