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What Does Crypto Compliance Mean for your Start-Up Business?

Crypto compliance solutions are now available in the market as they provide useful tools for companies or start-up businesses to efficiently meet their regulatory requirements.

Hence, to be compliant, especially if your start-up business is operating with cryptocurrencies, it must implement several processes depending on the jurisdiction in which your business is located.

However, the following discussions in this article will help you discover what Crypto compliance means for your start-up business.

What Does Crypto Compliance Mean For Your Start-Up Business?

What is Crypto Compliance?

First of all, let’s understand what cryptocurrency is. 

Cryptocurrency popularly known as ‘crypto’  is a virtual currency that is secured by cryptography, which makes it nearly impossible for anyone to counterfeit.

Crypto Compliance on the other hand is basically process of achieving the standards stipulated by anti-money laundering (AML) rules, by putting in place the right tools and internal procedures to successfully reduce money laundering (ML) and terrorist financing (TF) using cryptocurrencies.

How does your start-up business become Crypto compliant?

Your start-up business can become Crypto compliant by adhering to Crypto AML rules. In adhering to these rules your start-up business must develop a ‘customer due diligence’ process to assist regulatory authorities in occasionally assessing your AML/CFT framework. 

This means that your start up would need to build an effective compliance policy program. This entails proper risk assessment to determine your company’s risk appetite as well as putting adequate measures to mitigate risks.

Your Start-Up business will need to build a compliance unit and employ certified crypto-compliance specialists to assist in the proper set-up of your compliance unit. By doing so, your start-up business will be prevented from having false positive results while engaging with blockchain analytic tools and will also be able to file suspicious transaction reports and suspicious activity reports when necessary. 

Above all, while utilizing this kind of system, it is important that your staff are kept up to speed on AML laws and policies, as it will go a long way in preventing shortfalls in the whole compliance process, which ultimately safeguard against the failure of your start-up business.

How do you become a Crypto Compliance Specialist?

To become a Crypto compliance specialist, you need to have a background knowledge of blockchain, cryptocurrency and take a Crypto compliance certification course. Also a Bachelor’s degree in any field and at least 3 years of general compliance experience within financial institutions or regulatory compliance is an added advantage.

5 Important Crypto Compliance Practices for your Start-up Business.

Given the regulatory uncertainty surrounding cryptocurrencies, it is important that your start-up business in this space understand their Crypto Compliance obligations. 

Hence, we have enumerated five best key Crypto Compliance practices that your start-up business is expected to implement. They include:

5 Best Crypto-Compliance Practices For Start-Up Business

1. Performing a comprehensive risk assessment that was recommended by The Financial Action Task Force (FATF).

2. Taking a close understanding of criminal typologies and red flags by performing the Know Your Customer (KYC) process and adequate Identity verification .

3. Build a compliance team that would help spot any AML/CFT threats.

4. Integrate compliance technology within your cryptocurrency compliance process which includes the Travel Rule.

5. Ensure that every stakeholder in your compliance solution understands their roles and responsibilities.

Lastly, your start-up business should also seek to implement an internal training program to ensure that your compliance employees remain familiar with the latest AML/CFT best practices, criminal methodologies and incoming regulations.

How Can A&D Forensics Help?

A&D Forensics can help your start-up business stay ahead in their Cryptocurrency Compliance and Investigation career by taking their expert led certification courses

In addition, consulting with the team and leveraging on cryptocurrency compliance tools and services like CaaS (Compliance as a service) by A&D Forensics can support your start-up business in its compliance journey and lessen the burden of crypto compliance on your start-up business.

Contributor: Loveth Odije

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LEAD FACILITATOR – CRYPTOCURRENCY INTUITION

Onyekelu Chioma is a passionate and professional teacher with expertise on blockchain and cryptocurrency education. She is a renowned blockchain advocate in Africa with the belief that there are so many career opportunities to be leveraged on in the Blockchain Industry.

Chioma is the Head of Academic and Training, the Crypto Bootcamp Community, and a member of Stake holders in blockchain technology association of Nigeria (SiBAN).

Chioma’s passion for fourth industrial revolution technology has helped her hold key strategic positions in various private sectors, regulating the way for blockchain adoption in the continent of Africa.

As an experienced teacher, blockchain educator, and a cryptocurrency trading coach, she has trained a lot of students and assisted them in identifying their innate skills which enabled them to carve a niche so as to become experts in their chosen blockchain career.

She’s currently a Crypto Forensic Intern at A&D Forensics and undergoing her Masters studies in Blockchain and Cryptocurrency at University of Nicosia

LEAD FACILITATOR – CRYPTOCURRENCY INVESTIGATIONS

Adedeji is a Forensic Investigation Practitioner and CertifiedBlockchain/Cryptocurrency Forensic
Investigator (CFE, CCI, CCFI & Reactor Certified) with more than Fifteen years of experience across few banks within the Nigeria Financial Sector and educator in Corporate workplace settings, Deji is uniquely qualified and involved in forensics analysis of Financial Infractions, Cryptocurrency crimes and designing plans that works for Government, Regulators, Law enforcement. He was appointed by SEC Nigeria as Member Virtual Asset and Fintech Regulatory framework drafting Committee, He is a member of Global Digital Finance’s KYC/AML working group in France and a member of the Industry led Thinktank that worked on and came out with FATF cryptocurrency Travel rule InterMessaging Standard for Virtual Assets (IVMS101) to help combat money laundering and terrorism financing using cryptocurrencies around the globe.
His law enforcement training efforts on new money and cybercrime have seen him train many law enforcement agents in various countriesn i.e Nigeria Police, Nigeria Army CyberWarfare command, Zambia Financial Intelligence Unit, Zambia Central Bank and more.
He is Chainalysis Sole Africa Investigative Partner helping law enforcement investigate criminal organizations using cryptocurrency to conceal illiccit activities across Africa, he is also a training Partner for Blockchain Intelligence Group based out of Canada.

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