KYB for crypto-based prop trading firms

asked by u/liammoreau · 11d · 2 answers

Curious if anyone has experience with the KYB process for newer prop trading firms, particularly those dealing heavily in crypto assets. The landscape feels a bit murky. We're seeing varying levels of scrutiny from different financial institutions when attempting to open accounts, even for traditional fiat operations. The usual due diligence feels amplified. Are others encountering this, especially concerning the source of funds if initial capital traces back through multiple crypto exchanges and personal wallets? It's not about hiding anything, more about the sheer volume of documentation and the often-skeptical reception.

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  • u/rossi_eva· 0 pts· 11d

    We've definitely experienced the amplified scrutiny you're describing. It seems like the traditional financial institutions are still finding their footing with crypto-native firms, and the due diligence often feels like a moving target. Have you found any specific institutions to be more accommodating or to have a clearer process?

  • u/fatou54· -1 pts· 11d

    "Murky" is an excellent descriptor for the KYB process in crypto prop trading. It feels less like due diligence and more like an elaborate game of financial whack-a-mole, doesn't it?

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