Let’s be blunt: Bad AML = bad UX
Let’s be blunt: Bad AML = bad UX
Regulators are clamping down. Users are dropping off. Legacy compliance tools are breaking under the weight of fragmented crypto regulations. Enter: a new breed of crypto-native AML startups - and they’re not just fixing compliance. They’re rebuilding trust, speed, and usability into the system.
Here’s what’s changing, who’s leading, and what it means for anyone building in crypto, DeFi, or fintech right now.
AML is no longer a crypto afterthought - if you're in crypto and still think AML is someone else's job, think again.
In the UK alone
The FCA now has a dedicated crypto enforcement team, with three full-time staff plus 12 seconded investigators laser-focused on tracking fraud, KYC breaches, and sanctions failures.
→ Source: Financial News
UK Treasury’s 2025 draft AML reforms put crypto firms squarely in the firing line, introducing tighter customer due diligence, mandatory reporting of suspicious activity, and steeper penalties for non-compliance.
→ Source: Yahoo Finance
The EU’s AML Authority (AMLA) now expects consistent compliance from all crypto asset service providers (CASPs) across member states. No more forum shopping.
→ Source: AMLA.europa.eu
And that’s just Europe.
In the U.S., the GENIUS Act is redefining stablecoin oversight — adding new complexity to how startups handle custody, issuance, and AML requirements for digital assets.
→ Source: Corporate Compliance Insights
Bottom line: Whether you're an exchange, wallet, or DeFi platform, AML expectations have moved from “good to have” to “non-negotiable.”
Why legacy compliance tools don't cut it?
Crypto moves fast. Regulations move slower - but when they do move, they hit hard.
The problem?
Most compliance tools used by crypto startups were never designed for on-chain complexity, smart contracts, or pseudonymous actors. They were retrofitted from banking models and it shows.
→ Transaction monitoring rules aren’t calibrated for blockchain behaviour
→ Customer due diligence tools lack native integrations with wallet analytics
→ Manual checks + spreadsheets = delays, missed flags, and compliance debt
When your risk system can't differentiate between a DeFi yield protocol and a mixing service, you're not just flying blind, you're inviting scrutiny. This is where crypto-native AML startups like us step-in.
Zero headcount
In yr 2020
3 Full-Time Staff
In yr 2023
15+ (including secondees)
In yr 2025
Why this is also a UX problem?
Let’s be blunt: Bad AML = bad UX.
→ Slow KYC flows. Repetitive forms. Weeks-long onboarding. Users either drop off or go elsewhere. In crypto, they have plenty of alternatives.
A recent study found that 67% of users abandon onboarding if it takes longer than a few minutes. Startups that bake AML into clean, automated flows can:
→ Convert more users with less friction
→ Stay audit-ready
→ Build trust from the first click
Smart compliance is a conversion tool. Not just a risk shield.
Why now’s the moment to get ahead?
→ If you're building or advising in crypto, here’s the deal:
→ You will be asked about your AML process.
→ You will be judged by your onboarding flow.
You will not get away with a box-ticking KYC form anymore. The smartest founders are realising that AML isn’t a back-office problem, it’s a core UX function. And the smartest compliance teams are automating fast.