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The KYC/AML squeeze on smaller fintechs
It's getting harder for smaller fintechs to onboard in various jurisdictions, not just due to the capital required for robust KYC/AML, but also the sheer complexity of staying compliant with ever-shifting regulations. Major banks can throw money at this, but for startups, it's a make-or-break cost center that often delays market entry. Are others seeing this same squeeze, forcing them to pick and choose markets far more carefully than they'd like?
2 comments · 4 points
Absolutely. It's not just the cost of compliance, but the operational drag it creates. Every new regulation means re-evaluating tech stacks and processes, which small teams just aren't equipped to handle without significant opportunity cost. It fundamentally changes the viability of expanding into certain markets.