Evolving Regulations: How to Stay Ahead with KYC-Chain

One of fintech companies’ major challenges is keeping up with complex and constantly-evolving regulatory regimes. In this update, we outline some of the most common compliance issues facing fintech companies of all sizes – and how they can be overcome using KYC-Chain.

The regulatory requirements governing financial transactions and activity are constantly evolving. The good news is that thanks to technology like KYC-Chain, compliance no longer needs to be an obstacle to growth. 

For new fintech businesses in both the traditional and blockchain spaces,keeping up with current, constantly-evolving global AML regulations can be quite complex. 

Some of the regular challenges of compliance include:

Challenge 1 – Startups usually have low onboarding volumes to begin with, which grow in tandem with the business.

Solution – Checks can at first be carried out with semi-automated processes, then when volumes increase the process can be further automated by using Risk Scoring/Automation.

KYC-Chain also offers tiered pricing to reduce ongoing costs for high volume growth. We can also provide a white-labelled frontend to help collect user data and documents, which can help save resources for fintechs seeking to develop their own frontend UI.

 

Challenge 2 – New rules and regulations such as the Travel Rule & AML5 directive mean fintechs have to pivot quickly to comply with new workflow and regulatory requirements.

Solution – KYC-Chain has preemptively developed solutions that allow our clients to stay ahead of these changing regulatory challenges. For the Travel Rule, we have designed a Travel Hub solution to help exchanges become compliant, including tools to find out the identity of the beneficiaries.

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Challenge 3 – Some fintechs such as crypto exchanges may begin operations by just onboarding one specific type of user, such as retail customers. As their model and clientele type can change as their business grows, exchanges may later decide that they want to onboard institutional and corporate clients too.
This means the exchange will need to expend additional time and resources finding new corporate KYC-focused compliance providers, and to adopt – and navigate – several service agreements.

Solution – The KYC-Chain platform is designed to be an integrated, one-stop solution, allowing different KYC modules to be added as required in order to meet the requirements of each client’s specific onboarding processes. This means our clients only need to hold one service agreement with KYC-Chain, which allows all of the different KYC features we offer to be handled and managed through our platform.

 

 

If you are also looking for ways to optimize your compliance processes while reducing costs, get in touch and we’ll be happy to discuss how your company can use KYC-Chain to scale and grow your business.