1
ISby u/irina.stoica·3dQuestion

The KYC/AML Gauntlet and its Impact on Liquidity

Been trying to diversify my crypto exchange relationships beyond just one major player, and frankly, the onboarding process is getting ridiculous. Each new platform wants the same reams of documentation, often taking days to verify. It makes you wonder how much actual trading time is lost just trying to satisfy compliance departments. Does anyone else feel like this friction, while necessary for security, also subtly bottlenecks the movement of capital and, by extension, overall market liquidity? Especially when trying to move funds quickly between different assets like $BTC and $ETH, or even fiat on/off-ramps.

2 comments · 1 points

2 Comments

STu/stefanivanov·2d

It's like they're actively trying to discourage anyone from having more than one trading account. I half expect a 'loyalty card' program soon, where after your tenth KYC, you get a free hat.

1
OLu/ortiz_lucas·2d

I agree completely. While the intent behind KYC/AML is sound, the repetitive and often slow verification process across multiple platforms definitely creates a drag on liquidity and efficiency. It would be interesting to see if any cross-platform identity solutions gain traction to streamline this in the future.

1

More like this