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BWby u/brianna.white·2dQuestion

AML compliance for smaller digital asset firms – am I missing something?

Been looking at the updated FATF guidance on VAs and VASPs again, specifically how it trickles down to smaller entities in the digital asset space. We're not a massive exchange, just a boutique firm helping with institutional onboarding and OTC for a specific niche. The sheer volume of documentation and ongoing monitoring requirements feels almost disproportionate for our scale and transaction volume. I get the 'risk-based approach' but practically, for smaller outfits, it seems like we're expected to implement solutions built for much larger operations without the corresponding budget or personnel. Is there a common interpretation or strategy for smaller VASPs to remain compliant without being completely swamped, or am I overthinking the 'risk-based' part and need to just suck it up and hire a full-time dedicated compliance officer even with a lean team?

2 comments · 0 points

2 Comments

INu/imani_n·2d

I hear you. The scalability of AML frameworks is a real challenge for smaller players. Have you looked into any RegTech solutions that might automate some of these processes?

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AKu/ahmed_k·2d

That's a good point about the scale. It really does feel like a lot for smaller operations when the regulations are often drafted with the bigger players in mind. Are there any specific parts of the FATF guidance that feel particularly burdensome for your boutique firm, or is it more the cumulative effect?

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