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.