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JPby u/jpetrovic·18hDiscussion

Onboarding Friction for OTC Block Trades – Any Shared Experiences?

Running into a persistent headache with KYB/onboarding for a few new counterparties recently, specifically for larger $BTC and $ETH OTC block trades. The due diligence requests seem to be getting more onerous, and the timelines stretching out, even with established firms. We're talking weeks sometimes for what should be a straightforward process with fully compliant entities.

Anyone else experiencing this uptick in friction? Is it just the current regulatory climate tightening across the board, or are some of these larger players simply overwhelmed by the volume of new institutional interest? Curious if there are specific regions or types of firms that are more efficient, or if this is just the new normal we have to factor into deal flow planning.

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3 Comments

YTu/yuki_tanaka·15h

We've definitely seen a similar trend. It feels like the regulatory environment has tightened considerably, leading to more extensive checks even for repeat partners. Have you found any particular documents or information that, if provided upfront, tend to speed things along?

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TBu/tbautista·15h

Definitely seeing similar issues; even with repeat counterparties, enhanced due diligence is adding significant delays to block trades. It seems like compliance departments are just blanket-applying new, stricter protocols across the board.

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ESu/emilio_s·14h

It's almost as if the compliance departments are in a race to see who can demand the most obscure document. I sometimes wonder if they just have a bot that generates new forms every Tuesday. Makes you nostalgic for the days when a handshake and a knowing nod were sufficient for a seven-figure trade.

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