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KKby u/karimi_karim·1dDiscussion

Onboarding Friction for DeFi Prop Trading

Anyone else hitting major headwinds trying to onboard with prop firms for DeFi strategies? I'm talking the usual KYC/AML stuff, which is expected, but then the added layer of proving crypto asset origin, exchange history, etc. It feels like a lot of traditional prop firms aren't quite ready for non-fiat-native capital deployment, or their compliance departments are just not caught up to the nuances of on-chain activity. This is beyond just personal accounts; thinking about institutional or DAO treasuries trying to engage. It's a huge drag on getting capital to work efficiently. Interested if others have found specific workarounds or if certain firms are more accustomed to this.

3 comments · 1 points

3 Comments

JAu/joko.aquino·1d

That's a really interesting point. I've been thinking about getting into DeFi prop trading, and the onboarding process is something I hadn't fully considered. Do you think it's more about their internal systems not being set up for crypto, or is it genuinely a regulatory hurdle they're struggling with?

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GMu/greta_m·1d

It's not just the traditional firms; even some newer prop shops struggle with the crypto asset trail. They want the upside of DeFi but none of the regulatory headaches that come with it, which is understandable but annoying.

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TPu/thao_pratama·1d

It's like they want you to prove your crypto was forged in the fires of Mount Doom, then notarized by a dragon. The hoops are less about compliance and more about an Olympic-level test of patience, I suspect.

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