In 2025, Virtual Asset Service Providers (VASPs) are operating under unprecedented regulatory pressure.
As the digital market evolves, regulators, banking partners and clients now expect the same level of transparency and operational discipline seen in traditional finance. Loosely defined onboarding processes and inconsistent due diligence are no longer acceptable.
KYC Portal CLM, which offers an advanced CDD and AML data collection and collation CLM platform, recently explored the current landscape for VASPs
This change is driving the need for complete reform in how VASPs manage client information. It’s not enough to have written policies; compliance must be built into daily operations, with data collection, risk assessment and record maintenance conducted seamlessly from onboarding to account closure. This is where Client Lifecycle Management (CLM) systems, such as KYC Portal CLM, are transforming the compliance landscape.
Globally, regulators are moving from advisory roles to active enforcement. The FATF’s Travel Rule is now firmly in effect, while the EU’s Markets in Crypto-Assets Regulation (MiCA) has introduced strict standards for onboarding, reporting and record-keeping. Even jurisdictions once known for a light-touch approach are tightening their frameworks to avoid blacklisting.
Compliance teams face the challenge of identifying ultimate beneficial owners (UBOs), verifying sources of funds, maintaining ongoing monitoring and keeping all data current—often using outdated or fragmented tools.
Speed alone no longer defines effective compliance. Regulators now expect full traceability, detailed control and the ability to provide proof of compliance instantly. Static onboarding forms and one-off checks are inadequate in a fast-moving, cross-border environment where client profiles and risks can change rapidly.
KYC Portal CLM provides an integrated AML compliance management platform designed for these challenges. It handles every stage of the client journey—onboarding, due diligence, risk scoring, periodic reviews, documentation, approvals and offboarding—through a single centralised system. VASPs can configure their own compliance policies without relying on developers, adapting workflows and risk models instantly as new data emerges.
The platform supports dynamic document requests, scheduled reviews, detailed access controls and an extensive audit trail. This allows compliance teams to respond quickly to regulatory changes, trace historic decisions and maintain a continuous understanding of client risk profiles. With a no-code, rules-based design, KYCP ensures adaptability as regulations, business needs and market conditions shift.
For more information about VASPs, read the full story here.
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