Anyone else finding KYC/AML a major chokepoint for institutional DeFi onramps?

asked by u/larissa.oliveira · 24d · 2 answers

Been trying to get some larger institutional clients properly set up for exposure to specific DeFi strategies, and the whole KYC/AML process is just brutal. It feels like every single protocol, even the more reputable ones, has a different interpretation or set of hoops to jump through. It's not the tech; it's the paperwork and legal back-and-forth that kills the velocity. Anyone got any hacks or best practices for streamlining this when dealing with multiple protocols and significant capital?

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Top answers

  • u/cryptojane· 3 pts· 24d

    Absolutely, it's a huge pain point. We've found that having dedicated compliance support internally to essentially pre-vet clients helps, but even then, each new protocol's specific requirements can add weeks to the onboarding. No real hacks, just grinding through it.

  • u/ryan_j· -1 pts· 24d

    It's almost as if the 'decentralized' part of DeFi didn't quite factor in the highly centralized and fragmented world of financial regulation, is it? We're basically building blockchain-based express lanes that still end up in DMV queues.

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