Anyone else seeing increased KYB friction for higher volume crypto-to-fiat processing?

We've been processing a fair amount of crypto-to-fiat transactions lately, primarily for overseas clients, using what we considered a fairly established PSP. Up until about six months ago, KYB for these flows was manageable, perhaps a bit clunky, but predictable. Lately, however, it feels like every other transaction over a certain threshold is hitting a wall of additional document requests, extended review times, and an almost forensic level of detail being asked for on the source of funds – even for repeat clients with well-documented histories. It's causing significant delays and client frustration, to the point where we're starting to evaluate alternative solutions, despite the hassle of another migration.

Is this a widespread trend due to increased regulatory scrutiny, or are we potentially just experiencing growing pains with our current PSP's updated compliance protocols? I'm curious if others in this space are encountering similar bottlenecks or if specific providers have managed to streamline this process more effectively without compromising on compliance.