CryptoCurrency Compliance

Onboard customers confidently with rigorous KYC that doesn’t sacrifice user experience. Verify identities and documents (ID, selfie, liveness) within seconds, and screen new users against PEP and sanctions lists at signup. Know-Your-Transaction (KYT) checks are built in – assess a user’s initial wallet deposits and history for red flags from day one. Ongoing due diligence continues post-onboarding: get alerts if a customer’s risk profile changes (e.g. new adverse media or if they become a PEP). Our workflows integrate with your exchange signup and tiered account system, so compliance reviews trigger when they matter most during customer lifecycle.

• Frictionless Verification: API-ready KYC integration with document verification and biometric checks streamlines onboarding while satisfying AMLD5 and FinCEN requirements.
   
• Dynamic Risk Profiling: Risk-score each customer and wallet upon onboarding and update continuously. High-risk factors (large volumes, risky jurisdictions, or ties to past fraud) prompt enhanced due diligence automatically.
   
• Customer 360° View: Consolidate identity data, blockchain addresses, and activity into a unified profile. This holistic view lets compliance teams spot discrepancies (e.g. undeclared high-risk wallets) and demonstrate robust crypto AML compliance to regulators.
   

Monitor crypto transactions in real time with advanced analytics that flag suspicious behavior across wallets, accounts, and networks. H3M’s AI-driven engine analyzes deposits, withdrawals, and trades on your platform – as well as on-chain movements – for patterns like structuring, layering, and sudden volume spikes. Rule-based scenarios cover known red flags (e.g. rapid in-out transfers, multiple accounts funneling to one address), while machine learning models adapt to emerging typologies (such as cross-exchange arbitrage abuse or novel mixing patterns). On/off-ramp tracking links on-platform activity with blockchain flows to detect when users attempt to obscure fund origins or destinations via DeFi and mixers.

• Comprehensive Coverage: Monitor on-platform transactions (trades, deposits, withdrawals) and off-platform blockchain movements in one place. Identify risky source or destination wallets before funds enter or leave – ensuring safe on/off-ramping for your exchange.
   
• Flexible Rules & AI Detection: Leverage a rich library of crypto-specific scenarios (e.g. rapid token swaps through DEXs, micro-deposits just under reporting thresholds) and customize them with our Scenario Builder. Then layer on AI anomaly detection to catch subtle patterns human-crafted rules might miss.
   
• Real-Time Alerts with Low Noise: Set real-time or near-T+0 monitoring for critical channels (e.g. large withdrawals) and periodic batch scans for broader review. Machine learning reduces false positives by scoring alerts before they surface – so your team sees truly suspicious cases first, not a sea of noise.
   

 Stay compliant with global sanctions as they extend into crypto. Our solution screens both customer identities and blockchain addresses against all major sanctions and watchlists (OFAC, UN, EU, UK, etc.) updated daily. Every inbound or outbound wallet address is automatically checked against known blocked or high-risk crypto addresses – including those linked to sanctioned parties or ransomware groups. VASP identifiers and Travel Rule data are integrated, allowing you to identify when a transfer involves another exchange or custodian and to share/retrieve required originator/beneficiary information securely. This ensures your exchange meets FATF’s Travel Rule and local regulations in every jurisdiction you operate.

• Crypto Address Screening: Instantly flag deposits or withdrawals involving addresses on sanctions lists or associated with sanctioned entities (e.g. OFAC-designated wallet addresses). The system also recognizes addresses belonging to mixers like Tornado Cash or Darknet markets, so you can pause or investigate funds with illicit provenance.
   
• PEP & Name Screening: Perform automated watchlist checks on individuals and entities during onboarding and ongoing reviews. Names are matched with high precision (handling transliterations and aliases) and enriched with context to minimize false hits. Even in the fast-paced crypto onboarding flow, you maintain robust PEP/OFAC checks without bottlenecks.
   
• Policy Control & Travel Rule Compliance: Configure country or risk-based rules (for example, block interactions with exchanges in sanctioned regions, or require enhanced checks for certain nationalities). Our Travel Rule support tags VASP-to-VASP transfers and ensures required sender/recipient data is captured and screened. This sanctions screening crypto solution lets you confidently facilitate compliant transfers, with an auditable trail for regulators.
   

Illuminate hidden connections in the crypto economy with H3M’s Link Miner graph analysis. This module maps relationships among wallets, accounts, and transactions, helping you unravel complex money laundering webs that spread across multiple addresses, exchanges, or even blockchains. Compliance investigators can visualize fund flows to see how a single deposit might split into dozens of addresses (a layering tactic) or how multiple seemingly unrelated accounts might funnel assets to the same destination. Graph algorithms cluster related wallets and identify central “hub” entities, revealing structuring, mule networks, or DeFi layering schemes that traditional siloed monitoring would miss.

• Holistic Blockchain Analytics: Trace crypto flows hop-by-hop through different services – from centralized exchanges to DeFi protocols and mixers – all within one investigation interface. Link Miner can follow the money through complex paths (e.g. CEX → private wallet → DEX trade → new wallet → another CEX) to help you identify complex typologies and ultimate beneficiaries.
   
• Connected Entity Mapping: Correlate on-chain data with off-chain customer data. For example, detect if multiple exchange accounts share a common withdrawal address or if one customer’s withdrawals consistently end up in a cluster of addresses linked to illicit activity. The network view exposes collusion and shared risk that single-account reviews overlook.
   
• Visual & Explainable: Generate intuitive graph visuals to include in reports to regulators or law enforcement. Each link and node comes with context (timestamps, amounts, labels like “Mixer” or “High-Risk Exchange”) so you can explain the risk clearly. By seeing the bigger picture, your team can escalate truly systemic threats and provide evidence-backed narratives in SARs or regulatory audits.
   

 In sum, H3M’s crypto compliance solution enables exchanges to operate transparently and safely amid tightening regulations. Compliance and legal teams gain the tools to reduce false positives, uncover hidden risks, and prove robust controls:

• Global Regulatory Alignment: Out-of-the-box support for FATF Travel Rule compliance, EU AMLD5, and FinCEN BSA rules means your exchange meets key VASP compliance solutions requirements internationally. Keep regulators satisfied with a system built for evolving crypto AML standards.
   
• Adaptive Risk Detection: AI and network analytics work together to spot complex fraud typologies – from layering across DEXs and cross-chain swaps to insider trading or market manipulation – giving you early warning on threats that others miss.
   
• Higher Precision, Lower Workload: By combining contextual screening and machine learning, H3M drastically cuts down noise. Compliance teams can focus on true risks instead of chasing endless alerts, improving efficiency and analyst morale.
   
• Audit-Ready and Scalable: Every alert, decision and data point is logged for audit trails. The platform scales with your growth – whether you’re monitoring 1,000 transactions a day or 100 million – so you can confidently expand into new assets and markets with compliance in hand.