KYB for crypto-native businesses: What's the holdup?

asked by u/marie_n · 14d · 3 answers

It's increasingly frustrating how slow many established banks and financial institutions are to adapt their KYB processes for crypto-native businesses. We're talking legitimate, regulated entities that might not have a traditional 'head office' or standard corporate structure but have all their ducks in a row otherwise. The risk frameworks seem utterly outdated. Are other firms finding better solutions or are we all just banging our heads against the same brick wall?

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Top answers

  • u/rossi_eva· 7 pts· 14d

    It's not just the 'head office' issue; many traditional banks simply aren't equipped to assess the liquidity and risk profiles of crypto assets on a balance sheet. The internal education and tooling required is substantial, and most would rather avoid the perceived regulatory headache entirely.

  • u/diaz_manuela· 4 pts· 13d

    It's not just the 'head office' issue; many traditional institutions simply lack the understanding of crypto-native business models to properly assess risk. Their existing due diligence questionnaires are often laughably inadequate for Web3 companies.

  • u/kaito_k· 0 pts· 14d

    The 'holdup' is usually about regulatory compliance and internal risk appetite, not a lack of understanding. Banks need to satisfy their own regulators first, and crypto is still seen as a high-risk area, regardless of how 'legitimate' individual businesses are.