Steps for a Bank Onboarding a Crypto Customer: A Compliance-First Approach

How Banks Can Safely Onboard Crypto Customers & Stay Compliant

With the rise of institutional crypto adoption, banks are facing a growing demand to support crypto customers. However, onboarding crypto-related businesses and individuals requires a structured compliance framework to mitigate risks and meet regulatory requirements.

At Scorechain, we help banks navigate the crypto onboarding process with AML compliance, risk management, and transaction monitoring solutions—ensuring secure and compliant banking relationships with crypto customers.

Steps for a Bank to Onboard a Crypto Customer

🔹 Step 1: Perform Initial Risk Assessment
✔ Evaluate the customer’s crypto exposure, transaction history, and business model.
✔ Categorize customers as low, medium, or high risk based on their crypto activities.

🔹 Step 2: Conduct Enhanced KYC & Due Diligence (KYB for Businesses)
✔ Implement Know Your Customer (KYC) and Know Your Business (KYB) protocols.
✔ Verify identities, source of funds, and compliance history.

🔹 Step 3: Screen Wallet Addresses for Risks
✔ Use Crypto Wallet Screening tools to detect connections to sanctioned entities, darknet markets, or illicit activities.
✔ Perform continuous wallet monitoring to track transaction behaviors over time.

🔹 Step 4: Implement Ongoing Transaction Monitoring
✔ Monitor real-time crypto transactions for unusual patterns.
✔ Flag and investigate suspicious activity linked to money laundering or fraud.

🔹 Step 5: Ensure Regulatory Compliance & Reporting
✔ Align with FATF Travel Rule, EU AMLD, FinCEN, and other global crypto regulations.
✔ Automate regulatory reporting and audit trails for compliance reviews.

🔹 Step 6: Set Up a Risk-Based Banking Policy for Crypto Clients
✔ Establish clear guidelines on which crypto businesses and individuals qualify for banking services.
✔ Define acceptable use policies and risk thresholds for crypto transactions.

How Scorechain Helps Banks Onboard Crypto Customers

At Scorechain, we provide banks with the tools needed to assess, monitor, and mitigate crypto-related risks throughout the onboarding process.

Scorechain’s Crypto Compliance Solutions for Banks:

🚀 AML & KYT Screening – Identify high-risk customers and wallets before onboarding.
🚀 Real-Time Crypto Transaction Monitoring – Track customer transactions for compliance and risk management.
🚀 Sanctions & Blacklist Screening – Ensure compliance with OFAC, FATF, and global regulatory lists.
🚀 Automated Compliance Reporting – Generate audit-ready reports for financial regulators.
🚀 Risk-Based Decision Support – Implement customizable risk scoring for crypto customers.

Who Needs a Crypto Customer Onboarding Strategy?

✅ Banks & Financial Institutions – Safely onboard and manage crypto clients.
✅ Payment Processors & Neobanks – Ensure secure and compliant crypto transactions.
✅ Regulators & Compliance Teams – Develop frameworks for crypto-related risk assessment.
✅ Crypto Businesses & Institutional Investors – Establish banking relationships with full compliance.

Onboard Crypto Customers Securely & Compliantly

💡 Banks CAN serve crypto customers—when they have the right compliance framework. Let Scorechain help you build a secure, scalable, and fully compliant crypto onboarding process.