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PLENITUDE INSIGHTS: From Fines to Fixes

27 May 2025

PLENITUDE INSIGHTS: From Fines to Fixes

As regulatory scrutiny of the crypto industry intensifies, enforcement actions send a clear message: crypto
compliance must meet the standards already expected from their traditional finance (TradFi) peers.

This paper explores recent regulatory actions against Crypto Asset Service Providers (CASPs) and traditional financial institutions to uncover common compliance failures across key control areas such as customer due diligence, sanctions, governance, and transaction monitoring.

Firms that treat compliance as a strategic enabler—rather than a regulatory burden—will be better positioned to thrive in an increasingly regulated crypto ecosystem.

Key takeaways:
  • Regulators are raising the bar for CASPs, applying expectations that are similar to those from TradFi peers.
  • Recent fines and enforcement actions reveal recurring failings, particularly in governance, customer due diligence and
    transaction monitoring.
  • Proactive compliance is essential: CASPs must shift from a reactive mindset to building mature, scalable, and auditable
    frameworks.
  • Using enforcement insights as a roadmap, CASPs can reduce regulatory risk, build trust, and enable sustainable growth.

 
Conclusion

The evolution of crypto regulation presents an opportunity to build stronger and more resilient businesses. Compliance is not a checkbox exercise—it’s the foundation for long-term stability, growth, and trust. By acting early, drawing on lessons from other sectors, and using existing guidance as a starting point, firms can position themselves to meet regulatory  expectations and contribute to a more sustainable and credible industry. 

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