On-chain transaction review for smaller crypto firms - AML regs
Starting to get my head around AML requirements for crypto, specifically for smaller outfits that aren't handling huge volumes yet. We're doing basic on-chain analysis for transactions, mostly $BTC and $ETH, but the level of detail some of the bigger players go into with chain-hopping and tumbler detection seems… a lot. Is there a general consensus on how granular this needs to be for smaller firms before it becomes overkill and just eats up resources without a real compliance benefit, or do you just have to match the big guys from day one?
Yeah, it's a bit of a moving target, isn't it? For smaller firms, I think the key is demonstrating a risk-based approach rather than trying to replicate the big boys' tech stack. Documenting your methodology and showing you're actively monitoring seems more important than catching every single obscure mixer, at least initially.