In the digital asset space, compliance is no longer just about ticking regulatory boxes. It’s becoming the foundation of trust, legitimacy, and scalable growth. As the industry matures and global regulators sharpen their frameworks, forward-thinking firms are recognising that compliance doesn’t need to slow innovation, it can actually accelerate it.

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For companies operating at the intersection of traditional finance and crypto, the real opportunity lies in transforming regulation into a catalyst for innovation, adoption, and financial inclusion. And that begins with reimagining what compliance looks like in practice.

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During a recent industry panel, Relm’s COO and Compliance Director, Zeeshan Uppal, shared his insights on how the role of compliance is evolving, what “compliance by design” really means, and how regulated digital asset institutions can turn compliance into a true competitive advantage.

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1. Reimagining Compliance: From Barrier to Enabler

A common misconception in the industry is that compliance acts as the “police”, a restrictive force holding innovation back. But in reality, compliance is there to enable innovation by ensuring financial services are delivered responsibly, safely, and in line with evolving regulatory expectations. Technology has been central to this shift. Automation now powers much of the first line of defence, drastically reducing operational overheads and freeing compliance professionals to focus on higher-value, escalation-level decisions. Instead of slowing teams down, compliance has become a scalable, technology-enhanced partner in growth.

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2. What “Compliance by Design” Really Means

Compliance by design starts from the bottom up. At Relm, we build our policies, processes, and procedures around the products and services we deliver, not the other way around. Only then do we localise them based on the requirements of each jurisdiction in which we pursue licensing. This approach ensures that when we engage with banking partners or regulators, we’re speaking the same language and demonstrating that compliance is embedded, deliberate, and central to our business model. But it works both ways. Yes, the wider organisation needs compliance training, that’s a regulatory obligation. But the compliance team also needs business and product knowledge to operate effectively. Compliance cannot sit in a silo; it must be integrated into the commercial and product fabric of the company.

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3. How Emerging Technologies Are Transforming Compliance

Artificial intelligence, blockchain analytics, and programmable identity are reshaping the compliance function more rapidly than ever before. On-chain analytics (such as Elliptic) have evolved far beyond traditional transaction monitoring, giving compliance teams real-time insights into behaviours, risk patterns, and wallet interactions. AI and LLMs are enabling a truly risk-based, data-driven approach to customer due diligence, refining customer profiles with more accuracy than manual methods ever could. Deepfake detection and identity verification tools now form an essential part of the compliance stack. As scammers adopt increasingly sophisticated technologies, compliance teams must stay one step ahead by adopting and adapting to new tech themselves. Technology isn’t replacing compliance; it’s elevating it.

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4. The Challenges of Operating in a Hybrid TradFi Crypto Environment

As a regulated institution operating across both traditional finance and digital assets, Relm sits at a unique intersection and it comes with its own challenges. Applying for and maintaining multiple licences across the world requires significant investment, both financially and operationally. Engaging with numerous regulators, responding to evolving frameworks, and ensuring consistency across jurisdictions requires a high level of operational maturity. High barriers to entry exist for a reason and once licences are obtained, the real work begins: building and standing up the teams, processes, and infrastructure required to deliver a best-in-class product.

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5. Misconceptions That Need to Change

Some myths persist in the industry:

“Compliance is the police.” It isn’t. Compliance is a strategic enabler, a guide, and a safeguard for responsible innovation. “High regulatory barriers exist to keep people out.” In truth, they exist to protect the industry, customers, and the integrity of the financial system. They ensure that only the most committed and capable firms enter the market. Changing these perceptions is essential to increasing trust and adoption.

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6. When Compliance Becomes a Competitive Advantage

In digital assets, regulatory approval equals access. Licences and regulatory permissions provide the foundation for new offerings, markets, and partnerships. As global frameworks mature and institutional adoption accelerates, firms with regulated, compliant solutions will be positioned to lead. We’ve already seen a shift: major institutions such as J.P. Morgan have gone from a hard “no” on crypto to launching their own digital coin within 24 months. This pivot reflects a broader trend, regulation is becoming the bridge between innovation and institutional adoption. Crypto regulation shouldn’t be seen as a constraint. It’s the pathway to scale, trust, and legitimacy.

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Final Thoughts

Compliance is no longer an operational necessity; it’s a strategic differentiator. For companies operating at the intersection of traditional finance and crypto, it’s the backbone of trust, the foundation for expansion, and a source of competitive advantage.

At Relm, compliance is built into everything we do: by design, by purpose, and with the future of digital finance in mind.

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