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Crypto Compliance: Source of Wealth & Wallet Whitelisting [Webinar Summary]

Picture of Uve Poom

Uve Poom

COO & Co-founder at CryptoSwift

Crypto Compliance: Source of Wealth & Wallet Whitelisting [Webinar Summary]

CryptoSwift and ChainComply hosted a webinar on 6 October 2026, discussing how CASPs can comply with the Transfer of Funds Regulation (TFR) using the Know Your Wallet (KYW) and the AML Regulations (AMLR) using crypto-specific Source of Wealth (SoW) analysis tools.

You can read the webinar summary below or access the full webinar recording at https://shorturl.at/aSrkR.

CryptoSwift platform architecture and compliance framework

  • CryptoSwift operates as a compliance hub supporting digital currency transactions across jurisdictions globally.
  • CryptoSwift holds ISO certification, ensuring compliance with DORA
  • As the only EU-native vendor on the market, it offers out-of-the-box compliance with TFR, AMLR, and GDPR.
  • CryptoSwift operates as a SaaS cloud-based service, exchanging travel rule messages and supporting self-hosted wallets. The rule engine automatically processes low-risk compliance authorizations while routing higher-risk transactions to compliance officers.
  • CryptoSwift integrates with external blockchain analytics tools like Scorechain, Lukka, and AMLBot.

Wallet profiling and enhanced verification workflows

  • A transaction of 31.51 ETH valued at 76,000 triggered EDD and travel rule obligations.
  • The KYW feature combines on-chain data, off-chain data, and regulatory information to analyze wallet behavioral analytics.
  • CryptoSwift automatically generates transaction records by monitoring connected wallets to streamline compliance workflows.

In the demo example, €76000 worth of ETH was deposited to the wallet of a CASP client from an unknown wallet. This triggered a series of checks.

  • The KYW check on CryptoSwift classified an unknown wallet as a non-custodial one. The assessment was based on behavioural data with a medium confidence score.
  • The compliance officer  used this data to initiate a self-hosted wallet verification. This can be performed by the user through test transfers, self-declaration (possibly supported by visual proof), and cryptographic signature proof – the best method, if supported by the wallet operator.
  • Enhanced transaction verification supports liveness checks via audio-video selfie recordings to confirm human presence and detect deep fakes.
  • The workflow also supports Enhanced Due Diligence operations, specifically Source of Funds (SOF) / Source of Wealth (SOW) checks.

AML regulations and Source of Wealth investigations

  • The new AMLR harmonizes SOW and SOF rules into EDD toolkits by 10 July 2027.
  • AMLA in Frankfurt will harmonize and reinforce supervision starting next year by selecting 40 high-risk financial groups.
  • ChainComply integrates data from 100 exchanges and blockchains to build deterministic SOW narratives and reports.
  • Using API keys instead of CSV files ensures primary data security and prevents manipulation.
  • Blockchain analytics tools provide alerts, but deep SOW investigations are required to properly contextualize risk.
  • Cases involving complex multi-wallet structures or margin accounts require detailed data extraction per sub-account. 

CASPs need to implement compliance infrastructure that keeps payments instant, but also makes them secure.

  • Blockchain enables real-time payments by integrating existing fiat risk data solutions and cryptonative tools.
  • Implementing real-time crypto payments remains cost-effective by leveraging fiat compliance technologies. 
  • The Travel Rule identifies beneficiaries to enhance security and satisfy reporting requirements for B2B transactions.
  • Fiat PSPs expanding into stablecoins increasingly embrace the Travel Rule as a valuable business enabler.

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