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Crypto Compliance and New Edge for Crypto Currencies Adoption

Crypto Compliance and New Edge for Crypto Currencies Adoption

Wednesday, 4 January, 2023

Investors, authorities, business owners, and consumers are all paying close attention to cryptocurrency as it continues to rule the financial world. 

It is a particular class of digital financial assets that is upheld by a decentralized cryptographic network that validates and preserves transaction logs. Due to the unregulated nature of the cryptocurrency market, the rise in usage has necessitated greater compliance.

Crypto companies are better able to reach the clients, investors, and shareholders they wish to draw in with the correct compliance and control structure. These important parties are frequently concerned with the security of the company's digital assets as well as its adherence to the pertinent AML regulations.

Adoption of cryptocurrency and the importance of compliance

The use of cryptocurrencies has grown gradually over time, with the worldwide market for cryptocurrencies reaching $1.7T and the overall volume of cryptocurrency transactions rising to $15.8T in 2021. When it comes to 2022 only Ethereum transactions were 338% higher in 2022 compared with 2021.

Parallel to this, the amount of illicit transactions has grown, reaching $14 billion in 2021. As a result, numerous governments from around the world have developed regulations regarding crypto compliance in an effort to safeguard investors and assist in identifying and discouraging illegal trading practices, such as:

  • financing terrorism
  • illegal goods
  • manipulating markets
  • evading taxes and laundering funds

The procedure of conforming to the specifications set in AML cryptocurrency legislation is urgently needed in the crypto market as a result of the snowballing/escalation. Investor protection is crucial because it can assist stop fraudulent actions within the cryptocurrency ecosystem.

AML refers to a collection of practices and laws that aid in spotting and preventing the exploitation of transactions resulting from illegal activity. Know-your-customer (KYC), know-your-business (KYB), and know-your-transactions (KYT) are the three main components of the regulatory duty (KYT). AML standards can be used by a business to assess people, entities, wallets, and transactions in order to spot and report suspicious and illegal activity to law enforcement.

The AML process's user verification is a crucial step. Building user confidence when implementing KYC, KYB, and KYT processes are beneficial for cryptocurrency traders. It's critical to comprehend how these processes are specified in order to comprehend the user verification ecosystem.

AML, KYC, KYT, and KYB-related solutions are being provided by several businesses and RegTechs to assist crypto companies. These businesses are divided into groups according to the solutions they use: AML, KYC, KYT, or KYB.

These businesses are further divided into groups based on the services they provide to cryptocurrency exchanges, wallets, and custodians. 

  • Crypto exchanges: These are the websites where people can buy and sell cryptocurrencies. These platforms allow for the trading of one cryptocurrency for another.
  • Crypto wallets: These applications are those that enable users of cryptocurrencies to store and retrieve their bitcoin holdings in a single location.
  • Crypto Custodians: These firms specialize in holding cryptocurrencies for retail and institutional investors. They frequently demand payment for their services.

We've examined a few prominent companies to help you better grasp the distinctions among the top compliance services. Based on how much money they have raised, we have picked and ranked them. Here is a more thorough list of companies that offer crypto compliance. The majority of these compliance service providers seem to be headquartered in the US, but there are also a lot of businesses in London, Singapore, and the Caribbean.

Crypto Compliance Providers Compared

Table from: Block Data tech- https://www.blockdata.tech/blog/general/crypto-compliance-providers-compared-2022


These crypto compliance service providers have actively promoted their offerings over the past few months by aggressively launching new products, raising money, earning industry certifications, and participating in merger and acquisition (M&A) operations.


  1. https://101blockchains.com/top-blockchain-crypto-compliance-companies/
  2. https://www.blockdata.tech/blog/general/crypto-compliance-providers-compared-2022
  3. https://www.blockdata.tech/blog/general/crypto-compliance-a-business-guide