Correspondent banking standards come to crypto

Regulators now require virtual asset service providers (VASPs) and stablecoin issuers to apply correspondent banking standards, including robust due diligence and sanctions compliance, treating counterparty relationships with the same scrutiny as banks. This regulatory shift forces crypto firms to enforce stronger controls on illicit finance risks similar to those in traditional correspondent banking, affecting their role as key liquidity and infrastructure providers in the crypto-secured financial system.

This Wire brief sits within Fusion42's coverage of Fintech.