Global Crypto Compliance Checker
This tool helps determine key compliance requirements for your crypto business based on your jurisdiction and service type. Select your region and business model below to see what regulations apply.
Your Compliance Requirements
Regulatory Overview
Key compliance pillars for crypto businesses in 2025 include:
- KYC (Know Your Customer): Identity verification and risk assessment
- AML (Anti-Money Laundering): Ongoing transaction monitoring
- Travel Rule: Cross-border transaction data sharing
- CFT (Counter-Terrorism Financing): Blocking terrorist financing
Each jurisdiction enforces these with different thresholds and technologies.
Trying to launch a crypto exchange, custodial service, or DeFi gateway in 2025? The biggest hurdle isn’t the technology-it’s proving you can meet the ever‑tightening KYC and AML requirements for crypto. From the U.S.GENIUS Act to the EU’s MiCAR, regulators worldwide now demand identity checks, transaction monitoring, and real‑time data sharing. This guide walks you through the global rulebook, the tech you’ll need, and a step‑by‑step checklist so you can stay compliant and keep your customers happy.
What the Global Landscape Looks Like
By late 2025, every major jurisdiction treats virtual assets like any other financial product. The Financial Action Task Force (FATF) an intergovernmental body that sets anti‑money‑laundering standards updated Recommendation15 in 2019, forcing Virtual Asset Service Providers (VASPs) exchanges, custodians, and wallet services that handle crypto to follow the same KYC and AML rules as banks. The most visible piece of that update is the Travel Rule a requirement to share sender and receiver details for transfers above a set threshold, now enforced in real time for high‑value moves.
Regulators have moved from optional guidance to mandatory law, and the penalties for non‑compliance have jumped from modest fines to multi‑million‑dollar sanctions and loss of banking relationships. In short, you either build a compliance engine now or you won’t be able to operate at scale.
Key Regulatory Pillars
- KYC (Know Your Customer) processes that verify a user’s identity, source of funds, and risk profile
- AML (Anti‑Money Laundering) ongoing monitoring to detect and report suspicious activity
- Travel Rule data‑sharing obligation for cross‑border crypto transfers
- CFT (Counter‑Financing of Terrorism) parallel checks to block funding for extremist groups
These pillars are implemented differently across regions, but the core idea is the same: identity, transaction, and risk data must be collected, stored, and reported in a tamper‑proof way.
Regional Deep Dives
Below is a snapshot of the three biggest markets. Each has its own agency, timeline, and set of technical expectations.
| Jurisdiction | Primary Law / Regulation | KYC Obligations | AML & Travel Rule Scope | Enforcement Body |
|---|---|---|---|---|
| United States | GENIUS Act legislation extending the Bank Secrecy Act to stablecoins and crypto issuers | Mandatory identity verification for all on/off‑ramps; biometric checks accepted if documented. | Travel Rule applies to transfers ≥ $5,000; real‑time data exchange via API to FinCEN. | FinCEN (Financial Crimes Enforcement Network) |
| European Union | MiCAR Markets in Crypto‑Assets Regulation, fully effective Dec2024 | Tiered KYC based on asset class - EMTs and ARTs require full verification; utility tokens have simplified checks. | Travel Rule for transfers above €1,000; cross‑border reporting via EU AML Authority (AMLA) platform. | National AML supervisors + AMLA (EU‑wide authority) |
| United Kingdom | FCA Financial Conduct Authority’s AML regime covering crypto firms | All firms must register, conduct Customer Due Diligence, and retain records for five years. | Travel Rule enforced through the FCA’s sandbox; thresholds align with EU - €1,000 equivalents. | FCA (Financial Conduct Authority) |
Notice the common threads: a national regulator, a risk‑based KYC tier, and a travel‑rule threshold that hovers around $5k/€1k. The variations lie in reporting formats, the agencies involved, and how strictly biometric data is accepted.
Technology Solutions That Keep You Compliant
Manual spreadsheets simply won’t cut it. Modern crypto firms rely on AI‑native monitoring, automated KYC onboarding, and blockchain analytics that can trace funds across multiple chains.
- AI‑Driven Transaction Monitoring - Uses machine‑learning models to flag unusual patterns in seconds. Helps meet the "real‑time" requirement of the Travel Rule.
- Automated KYC Platforms - Services like KYC‑Chain or Onfido pull passports, driver’s licences, and utility bills, then verify them against global sanctions lists.
- Cross‑Chain Analytics - Tools that aggregate data from Ethereum, Solana, and Bitcoin to produce a unified risk score.
- Secure Data Transfer APIs - Standardised endpoints for sharing sender/receiver info with counterparties, as mandated by the FATF Travel Rule.
- Audit‑Ready Record Keeping - Immutable logs stored on a permissioned ledger to satisfy both AML record‑retention and future regulator audits.
Investing in a modular compliance stack lets you adapt quickly when a jurisdiction tightens its rules. Most providers now offer pre‑built connectors for the US, EU, and UK regulators.
Practical Checklist for Crypto Firms
- Register with the relevant national regulator (FinCEN, FCA, national AML supervisor).
- Implement a risk‑based KYC workflow: Tier1 for low‑value users, Tier2/3 for high‑value or institutional clients.
- Deploy AI‑driven transaction monitoring that can handle >10,000 events per second.
- Set up a secure API to transmit Travel‑Rule data within the required timeframe (typically 30seconds).
- Maintain immutable records for at least five years; include source‑of‑funds documentation.
- Run regular sanctions list updates (OFAC, EU, UN) and perform enhanced due diligence on flagged entities.
- Establish a SAR (Suspicious Activity Report) escalation process with a legal team.
- Test your compliance stack in a sandbox (FCA sandbox, FinCEN pilot) before full launch.
Future Outlook - 2026 and Beyond
Analysts agree that the next wave will focus on standardising data formats across borders. The FATF is drafting a global API spec that could replace dozens of bilateral agreements. Expect:
- More jurisdictions adopting the FATF Travel Rule, including emerging markets in Asia and Latin America.
- DeFi platforms being pulled into the same KYC net as centralized exchanges, thanks to the 2025 FATF update.
- Increased use of zero‑knowledge proofs to share compliance data without exposing full customer details.
- Possible EU‑wide “Crypto AML Authority” that could issue unified licences for cross‑border operators.
For crypto firms, the message is clear: build compliance into your product roadmap now, or risk being shut out of banking and market access.
Frequently Asked Questions
Do I need KYC if I only offer a non‑custodial wallet?
In most jurisdictions, pure non‑custodial wallets are exempt, but if you provide any on‑ramp, off‑ramp, or token swap services you’ll be treated as a VASP and must collect KYC data.
What threshold triggers the Travel Rule?
The FATF sets a de‑facto standard of USD5,000 (or €1,000 in the EU). Some countries, like the US under the GENIUS Act, enforce the rule at exactly $5,000, while the UK aligns with the EU threshold.
Can I use a third‑party KYC provider?
Yes, most regulated firms outsource verification. Just ensure the provider keeps data within the jurisdiction’s residency rules and offers audit logs.
How often must I update sanctions screening?
Continuously. Real‑time APIs that refresh OFAC, EU, and UN lists every few minutes are now the industry norm.
What are the penalties for non‑compliance?
Fines range from €100,000 in the EU to over $10million in the US, plus possible loss of banking relationships and mandatory shutdown orders.
The compliance landscape can feel overwhelming, but taking it step by step makes it manageable.
Wow, this guide is a lifesaver! The way you break down the GENIUS Act and MiCAR makes the maze of regulations feel like a clear highway. I love how you pair the legal checklist with concrete tech suggestions – that's the kind of practical optimism we need. Building a compliance engine now feels less like a nightmare and more like an exciting challenge. Keep the momentum going, the crypto world is counting on leaders like you!