Onboarding friction with new crypto brokerages - KYC/AML becoming excessive?
Been looking into a few newer crypto brokerages for spot and futures, primarily to diversify away from my main two. The KYC/AML process seems to be getting more and more onerous. One outfit, specifically, requested a utility bill from the last 30 days, bank statements showing transfers to crypto exchanges, and then a video call to verify ID. This feels like overkill, especially when comparing it to traditional brokerage account openings. It's slowing down the ability to get capital deployed efficiently.
Anyone else experiencing this, or is it just the specific ones I'm looking at? I understand the regulatory environment is tightening, but there has to be a point where the friction outweighs the benefit, particularly for established traders with clean records. What's the sweet spot between compliance and operational efficiency from the broker's side, and what's reasonable for the user?