Ask Sumsubers: What should crypto exchanges focus on in 2025 to handle tighter rules and rising fraud risks?

Piotr Antypiuk

Head of Crypto Product

Highlights

Sumsub keeps getting questions from our followers about the specifics of regulatory compliance, verification, automated solutions, and everything in between. We’ve therefore decided to launch a bi-weekly Q&A series, where our legal, tech, and other experts answer your most frequently asked questions. Check out The Sumsuber and our social media every other Thursday for new answers, and don’t forget to ask about the things that interest you. This week, Piotr Antypiuk, our Head of Crypto Product, helps us understand what crypto companies should focus on in terms of new regulatory environment.

Follow this bi-weekly series and submit your own questions to our Instagram and LinkedIn.

Crypto exchanges in 2025 face a regulatory puzzle that calls for a fresh approach. The EU’s Transfer of Funds Regulation is already in play, and markets in India and Turkey are ramping up their oversight. At the heart of this shift is the Travel Rule, which now forces exchanges to carefully manage and transmit transaction details between institutions. This added layer means that every crypto transfer carries a digital paper trail—a challenge that demands new ways to handle data sharing without bogging down operations.

One sticking point is the uneven way different jurisdictions handle Originator and Beneficiary data. Some regions demand more detailed personal information than others, turning crypto transfers into a bit of a logistical riddle. In many cases, the scope of Personally Identifiable Information (PII) and the thresholds can vary widely.

Then there’s the tech challenge of making different systems talk to each other. The Travel Rule is in full swing, but the industry is still searching for ways to have these diverse systems converse. There is a growing momentum as various protocols push to connect for Travel Rule compliance—the trend is clearly accelerating throughout the industry. For instance, Sumsub has managed to link with a broad range of protocols as an interoperability provider, like GTR, CODE, and Sygna.

Perhaps the most relatable hurdle is the never-ending cycle of KYC checks. Repeatedly verifying your identity every time you sign up with another virtual asset services provider, link a card, or use an onramp creates a loop that clearly calls for a fresh approach to identity verification. The concept of one-and-done KYC—where you complete the process once and then share your verified identity across platforms—is beginning to take hold. It’s a move that could cut down on frustration and make the crypto space a bit friendlier. And in the end, exchanges that invest in smoother, more intuitive user experiences are likely to come out ahead.