Crypto platforms must comply with tightening AML laws worldwide—from MiCA in the EU to Travel Rule enforcement in the U.S., UK, Singapore, and UAE. This article explores global KYT, KYC, and AML expectations for VASPs and how iComply helps automate screening, verification, and cross-chain compliance.
The Global AML Landscape for Crypto
European Union
- Frameworks: MiCA, AMLD6, and Travel Rule compliance
- Expectations: KYC for all users, KYB for corporate clients, transaction monitoring (KYT), and cross-border data sharing via TRP (Travel Rule Protocol)
United States
- Regulators: FinCEN, SEC, CFTC, state regulators
- Requirements: MSB licensing, Travel Rule compliance, sanctions screening (OFAC), suspicious activity reporting (SARs), and BOI reporting for corporate accounts
United Kingdom
- Regulator: FCA
- Requirements: Registration, AML risk assessment, PEP and sanctions screening, transaction monitoring, and Travel Rule data transfer
Singapore
- Regulator: MAS
- Requirements: VASP licensing, CDD/EDD, KYT, and secure data transfer of originator/beneficiary details under the Travel Rule
United Arab Emirates
- Regulators: VARA (Dubai), SCA (federal)
- Requirements: KYC, transaction monitoring, UBO reporting, and Travel Rule compliance for all virtual asset transfers
Core Compliance Responsibilities for Crypto Firms
- KYC/KYB: Identity verification of users and business clients
- KYT: Monitoring of blockchain transactions for anomalies, structuring, and prohibited counterparties
- Sanctions + PEP Screening: Ongoing checks of users, addresses, and counterparties
- Travel Rule: Transmitting originator and beneficiary information securely and in real time
- Audit-Ready Documentation: Logging all decisions, escalations, and screening events
Why Compliance Is Harder in Crypto
1. Pseudonymity: Wallet addresses lack inherent identity linkage
2. Cross-border complexity: Differing enforcement timelines and data localization laws
3. Fragmented tooling: Most tools only cover part of the AML process
4. User drop-off risk: Friction-heavy verification drives away users if poorly implemented
How iComply Helps VASPs Stay Compliant and Competitive
iComply delivers a modular, API-friendly platform tailored to VASPs across jurisdictions:
1. Edge-Based KYC + KYB
- Verify individuals and businesses using local devices before encryption
- Avoid transmitting raw PII or breaching GDPR or UAE data rules
- Supports 14,000+ global ID types in 140+ languages
2. KYT: Smart Blockchain Monitoring
- Monitor wallet behaviour and transaction patterns
- Score and escalate suspicious flows (e.g., tumblers, DEX swaps, sanctions exposure)
- Correlate blockchain data with user risk profiles
3. Travel Rule Compliance
- Integrate with TRISA, OpenVASP, or TRP
- Securely send and receive originator/beneficiary info
- Log data sharing and counterparty responses for audits
4. Sanctions + PEP Screening
- Screen individuals, addresses, and corporate entities
- Configure alerting thresholds and refresh cycles
5. Unified Case Management
- Assign investigators, log decisions, and export regulatory reports
- Full traceability across onboarding, transactions, and disposition
Case Insight: US Crypto Exchange
A mid-sized US exchange adopted iComply’s full-stack compliance suite. Results:
- Reduced onboarding drop-off by 35%
- Achieved KYB, KYC and Travel Rule readiness in under 60 days
- Improved screening accuracy and reduced processing time
Crypto compliance isn’t just about checking a box – it’s about building trust, enabling scale, and staying ahead of regulators. VASPs that embed KYT, KYC, and AML at the infrastructure level are best positioned for global growth.
Book a call with iComply to learn how our platform helps crypto firms stay secure, compliant, and customer-friendly – across jurisdictions and chains.
