Navigating the complexities of the Markets in Crypto-Assets (MiCA) regulation is a growing challenge for financial institutions. MiCA is here to stay, so remaining compliant while maintaining operational efficiency is more important than ever. With ChainComply, you gain a powerful ally to streamline your anti-money laundering (AML) practices and confidently meet the latest crypto regulations without adding unnecessary strain to your operations.
Discover how ChainComply enhances your regulatory compliance, improves operational efficiency, delivers comprehensive oversight, and provides access to industry-leading blockchain expertise — helping your institution thrive in the MiCA era.
Main insights
MiCA’s AML requirements introduce new risks for all financial institutions, whether their exposure to crypto is direct or indirect.
All obliged entities must review their processes, update their tools and train their staff.
Using ChainComply, your institution can perform crypto-related due diligence easily and at scale.
Enjoy a 360-degree view of your client's financial activities with a combination of on-chain and off-chain data for comprehensive oversight.
Why MiCA compliance matters to financial institutions
MiCA is reshaping the regulatory landscape, extending its reach far beyond institutions directly exposed to crypto-assets. As licensed crypto entities and transactions with crypto exchanges become more prevalent, your institution will increasingly handle crypto-related activities, whether directly or indirectly (by exposure to transfers coming from crypto exchanges). These evolving risks mean adapting your compliance efforts is critical to staying protected.
As part of these changes, the European Banking Authority (EBA) on 16th January 2024 has issued its AML update, which requires financial institutions to:
Adjust AML policies to address direct and indirect crypto-asset exposure.
Strengthen Customer Due Diligence (CDD) for high-risk transactions involving Crypto-Asset Service Providers (CASPs).
Invest in technology that supports effective Know Your Transaction (KYT) investigations.
Ensure your staff is well-trained in identifying and managing crypto-related risks.
With ChainComply, you can stay ahead of these regulatory changes. Our MiCA-compliant solution empowers you to manage your crypto-related Enhanced Due Diligence activities with ease. We provide a crypto-related source of funds investigation tool for your AML departments,protecting your institution from potential risks while maintaining high operational standards.
Benefit 1: Stay ahead of regulatory compliance
Regulatory changes are constant, and staying compliant can be overwhelming. ChainComply ensures that your financial institution remains MiCA-ready.
Here is our promise:
Promise 1: You will retain your crypto-holding clientele and attract new ones...
Promise 2: You will not only mitigate fines but shine in the eyes of the regulator...
Promise 3: You will boost your operational efficiency on the new AML process
Sounds too good to be true?
Let us explain.
Promise 1: Whether you like it or not, your clients are holding crypto. With our tools, you can confidently serve these clients at scale. The trick is in the additional data. You will understand your crypto-holding clients and be able to communicate with them effectively through a digitalized process, data enhancement, and clear visualisation of the client’s crypto transaction history.
Promise 2: Thanks to our one-click reporting, you will be able to show a well-documented, comprehensive view of the client's on-chain and off-chain history. You will be able to prove that when you considered it necessary, you went all the way to understand the source of funds. This way, you will be able to take less risk than you are taking today.
Promise 3: With ChainComply, you can automate the new MiCA-imposed AML Processes from the start to reduce manual work, lower costs, and enhance the effectiveness of your compliance teams. More on this in the next point.
And there is one more a bit more long-term advantage that cannot be underestimated:
Promise 4: You can empower staff and allow them to build crypto expertise. If you equip your team with easy-to-use tools, you are enabling them to confidently manage crypto-related risks and make informed decisions, building strong foundations for the future.
Benefit 2: Boost operational efficiency
Crypto-related AML processes can be can be complex and time-consuming. ChainComply simplifies these tasks, making it easier to scale your due diligence without increasing your workload. You can enhance your operational efficiency on the new process by up to 10x. How?
Digitized data gathering: Automatically collect and update data from your clients’ blockchain wallets and crypto exchange accounts, eliminating manual data entry and saving you time.
Data augmentation: Access enriched insights about your client’s financial activities through our network of partners, helping you make more informed decisions.
Rapid data analysis: We pre-flag risky transactions so you can analyze them quickly using visualizations that help you understand risks in minutes, not hours.
Effortless reporting: With just a click, generate detailed reports for audits or regulatory reviews, ensuring you’re always prepared for inspections.
By automating data collection and analysis, you can scale your AML processes while saving time and resources, enabling your institution to operate more efficiently.
Benefit 3: Gain comprehensive oversight with a 360-degree view
Understanding your clients’ blockchain-related financial activities in full is critical to maintaining AML compliance. Many studies and assessments show that this cannot be ignored.
ChainComply gives you a comprehensive view of both on-chain and off-chain data, ensuring no transaction is overlooked.
Example Scenario:
Suppose one of your clients, John, transfers cryptocurrency from a non-custodial Ethereum wallet to custodial accounts on Binance and Coinbase. With ChainComply, you have full visibility of this transaction flow, allowing you to trace the source of funds (SOF) across these three platforms effortlessly. This complete view ensures you have all the information to conduct thorough risk assessments and stay compliant.
Benefit 4: Leverage our industry-leading blockchain analysis expertise
You don’t have to be a blockchain expert to perform superior risk assessments in 90% of cases. ChainComply integrates with top blockchain forensic tools, giving you access to cutting-edge insights.
Are you taking the first steps?
Leverage our partners' industry expertise. Our platform taps into the best blockchain intelligence available, allowing you to confidently assess and manage crypto-related risks.
Already bought a blockchain analysis tool?
Maximise the investment on the tool you use: ChainComply seamlessly integrates with the blockchain forensic tools you have chosen to invest in, ensuring you get the most out of your current crypto-compliance technology.
Crypto newbie or a market leader with ChainComply, you benefit from the deep expertise of the leading blockchain analysis tools.
Summary: How ChainComply helps you thrive in the MiCA era
MiCA introduces new compliance challenges, but with ChainComply, those challenges become opportunities for your institution. We help you not only to meet today’s regulatory demands but also to prepare for the future of finance.
By choosing ChainComply, you’ll:
Stay compliant with automated policy updates and advanced AML tools;
Enhance efficiency by scaling your crypto-related EDD processes up to 10x faster;
Gain comprehensive oversight of both on-chain and off-chain data for a 360-degree view of your clients’ financial activities;
Access cutting-edge blockchain intelligence to perform high-quality risk assessments and make informed decisions;
to make your crypto-holding clients happy — happy enough to tell all their friends, “Finally, somebody listened to me.”
Ready to start your MiCA journey?
While MiCA may bring new challenges, ChainComply turns them into opportunities to boost your growth and success in the digital assets era. Let us help you navigate these changes and keep your institution ahead of the curve.
Schedule a free call today to learn how ChainComply can make your MiCA related AML processes bulletproof.
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