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.