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Crypto Compliance

Crypto Compliance

Compliance requirements specific to cryptocurrency and digital asset businesses.

Crypto Compliance

Cryptocurrency and digital asset businesses face unique compliance challenges. PartnerAlly helps you manage these requirements alongside traditional compliance frameworks.

Crypto compliance requirements vary significantly by jurisdiction. Always consult with legal and compliance professionals for your specific situation.

Crypto-Specific Challenges

Why Crypto is Different

Digital asset businesses face:

  • Rapidly evolving regulations
  • Cross-border transaction complexity
  • Pseudonymous transaction parties
  • Real-time monitoring requirements
  • Novel technology considerations
  • Varying global standards

Regulatory Landscape

Key regulatory areas:

  • Anti-Money Laundering (AML)
  • Know Your Customer (KYC)
  • Travel Rule compliance
  • Sanctions screening
  • Licensing requirements
  • Consumer protection

Supported Frameworks

AML/BSA Framework

PartnerAlly covers AML requirements:

  • Customer identification programs
  • Transaction monitoring
  • Suspicious activity reporting
  • Record keeping
  • Compliance officer requirements
  • Training programs

Travel Rule

Specific support for Travel Rule:

  • Understanding requirements
  • Implementation guidance
  • Gap identification
  • Evidence collection

Learn more: Travel Rule

Wallet Screening

Address and wallet verification:

  • Sanctions screening requirements
  • Risk assessment needs
  • Monitoring approaches
  • Documentation standards

Learn more: Wallet Screening

How PartnerAlly Helps

Gap Identification

AI identifies crypto-specific gaps:

  • Missing Travel Rule procedures
  • Incomplete wallet screening
  • Transaction monitoring gaps
  • KYC weaknesses
  • Record retention issues

Framework Mapping

Map crypto requirements to controls:

  • Which policies address requirements
  • Where gaps exist
  • How controls overlap
  • What evidence is needed

Workflow Generation

Create remediation workflows for:

  • Implementing Travel Rule
  • Setting up wallet screening
  • Building transaction monitoring
  • Developing KYC programs

Key Crypto Compliance Areas

Customer Due Diligence (CDD)

Requirements for knowing customers:

  • Identity verification
  • Risk assessment
  • Ongoing monitoring
  • Enhanced due diligence triggers

Transaction Monitoring

Watching for suspicious activity:

  • Real-time monitoring needs
  • Threshold-based alerts
  • Pattern recognition
  • Investigation procedures

Suspicious Activity Reporting

Reporting obligations:

  • SAR filing requirements
  • Timing requirements
  • Documentation needs
  • Internal escalation

Record Keeping

Retention requirements:

  • Transaction records
  • Customer information
  • Communications
  • SAR records

Working with Crypto Frameworks

Enabling Crypto Frameworks

Go to Framework Settings

Navigate to Settings > Frameworks.

Enable AML/BSA

Toggle on the AML/BSA framework.

Configure Options

Select relevant sub-requirements.

Re-analyze Documents

Analyze existing documents against new framework.

Document Analysis

Upload crypto-specific documents:

  • AML/BSA policies
  • KYC procedures
  • Transaction monitoring rules
  • Travel Rule implementations
  • Wallet screening procedures

Gap Review

Focus on crypto gaps:

  • Filter by AML/BSA framework
  • Review Travel Rule gaps
  • Address wallet screening findings
  • Prioritize high-severity items

Risk Considerations

Unique Crypto Risks

PartnerAlly tracks crypto-specific risks:

RiskDescription
Regulatory uncertaintyChanging requirements
Cross-border complexityMultiple jurisdictions
Technology risksBlockchain-specific issues
Counterparty risksPseudonymous parties
Sanctions exposureBlacklisted addresses

Risk Prioritization

AI prioritizes considering:

  • Severity of potential violations
  • Likelihood of occurrence
  • Business impact
  • Remediation effort

Integration with Traditional Compliance

Framework Overlap

Crypto and traditional compliance overlap:

  • SOC 2 security controls
  • Data protection requirements
  • Access controls
  • Audit trails

Combined Approach

Benefits of unified management:

  • See all gaps in one place
  • Identify overlapping controls
  • Reduce duplicate work
  • Comprehensive reporting

Staying Current

Regulatory Changes

Crypto regulations change frequently:

  • Monitor regulatory guidance
  • Update frameworks when needed
  • Re-assess gaps regularly
  • Adjust controls accordingly

PartnerAlly Updates

We maintain current frameworks:

  • Framework updates released
  • New requirements added
  • Control mappings updated
  • You're notified of changes

Best Practices

For Crypto Compliance

  1. Start with fundamentals

    • AML program basics
    • KYC procedures
    • Transaction monitoring
  2. Address high-risk areas first

    • Sanctions screening
    • High-value transactions
    • New customer onboarding
  3. Document everything

    • Policies and procedures
    • Decision rationale
    • Testing and validation
  4. Stay flexible

    • Regulations will change
    • Build adaptable processes
    • Monitor for updates

Common Questions

Does PartnerAlly provide real-time transaction monitoring?

No. PartnerAlly helps manage compliance programs and documentation, not real-time transaction monitoring. Integrate with specialized tools for that.

What jurisdictions are covered?

PartnerAlly covers major frameworks including US AML/BSA and FATF Travel Rule. Jurisdiction-specific requirements may need additional consideration.

Can I track multiple crypto licenses?

Yes. Use organization settings and custom controls to track license-specific requirements.

How do I stay updated on crypto regulations?

Use Compliance Intelligence features to track regulatory changes. Also subscribe to relevant regulatory updates directly.

Learn More

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