The KYC/AML rabbit hole for non-traditional asset classes

Been pondering the widening net of KYC/AML requirements, especially as institutions dip their toes further into alternative asset classes. What's the general consensus on navigating this? It feels like the regulators are perpetually playing catch-up, and we're left interpreting a moving target while trying to onboard clients without them bolting to the next, less scrupulous, provider. Any thoughts on maintaining compliance rigor without creating an insurmountable barrier to entry?