Navigating the KYC landscape for fractionalized assets and blockchain tokens

I'm curious to hear how others are approaching KYC/AML with the rise of fractionalized real-world assets (RWAs) and various blockchain-based tokens, especially those that represent ownership in more traditional, illiquid assets. The nature of these assets blurs lines between securities, commodities, and even simple digital collectibles.

Specifically, what are the primary challenges you're seeing in verifying beneficial ownership and source of funds when the underlying asset itself might be illiquid or held in complex legal structures, and the token representing it trades on a relatively nascent, less regulated secondary market? Are firms leaning more on transactional monitoring for red flags, or are they trying to enforce more stringent upfront KYC for every participant in the ecosystem? It feels like the regulatory frameworks are playing catch-up, and I'm keen to understand the practical operational hurdles and how teams are mitigating them.