“Crypto firms can build compliance as a competitive advantage. It’s no longer just about keeping up. It’s about leading the industry forward.”

That message echoed across our recent Crypto Convergence event, where leaders from PayPal Digital, OKX, FINRA, and Paul, Weiss came together to tackle some of the toughest questions facing the industry. In an ecosystem shaped by innovation, velocity, and volatility, the role of compliance is rapidly evolving. It is shifting from a reactive necessity to a strategic differentiator.

A Shift in Mindset: From Keeping Up to Leading

Traditional narratives around compliance have often focused on risk avoidance. But at this year’s Crypto Convergence hosted by Quantifind in partnership with Deloitte, Elliptic, and ManchesterCF, a new narrative emerged. Forward-looking firms are using compliance to gain trust, scale responsibly, and shape policy, often ahead of regulators.
Representatives from some of the most prominent players in crypto and finance emphasized this shift. They are not just investing in compliance to meet today’s standards. They are building frameworks that can withstand tomorrow’s scrutiny. Whether it is operationalizing AI to detect evasion patterns or collaborating with regulators on new typologies, these firms are setting the pace.

Crypto-Specific Risks Require Crypto-Specific Controls

Panelists and roundtable participants highlighted the unique risks the crypto sector faces:

  • Sanctions evasion using stablecoins and privacy coins
  • High-volume scam activity involving romance and refund tactics
  • Gaps in issuer transparency and KYI (Know Your Issuer) protocols

These risks are not isolated incidents. They are becoming increasingly common. Yet many firms still rely on fragmented tools or generic controls. As one participant put it, “We need to stop treating crypto like a bolt-on to traditional financial infrastructure. It’s its own beast, and it needs purpose-built detection.”

Building Smarter Controls with Better Intelligence

One consistent theme was that entity resolution remains a fundamental challenge. Firms struggle to unify intelligence across sanctions, KYC, and fraud due to siloed systems and limited linkage. However, the emergence of graph analytics, AI-based clustering, and real-time monitoring offers a better path forward for those willing to invest.

“We need to stop treating crypto risk as a subset of traditional finance,” said one attendee. “This space moves differently. Our controls need to reflect that.”

A Call to Lead

It is clear that the industry is at an inflection point. Compliance no longer needs to be a lagging function. It can serve as a driver of innovation, reputation, and leadership. Firms that embrace this shift by breaking down silos, adopting AI, and engaging with regulators will not just avoid penalties. They will help define what trust looks like in the next era of finance.

In crypto, staying compliant is good. But driving the standards is great business. 

Download the full event summary to see what your peers are prioritizing in crypto compliance.