Building Compliant Crypto Wallets for Latin America

The Compliance Challenge

Building crypto products in Latin America presents unique challenges. Each country has different regulatory frameworks, and many are still evolving. But waiting for perfect clarity isn't an option—the market is moving fast.

Key Principles We Follow

1. Design for the strictest jurisdiction first

When we started building our internal wallet product, we made a deliberate choice: design for the most demanding regulatory environment from day one. This means:

• Full KYC integration from the start, even if some markets don't require it yet
• Transaction monitoring and reporting capabilities built into the core architecture
• Clear audit trails for every operation

2. Separate custody from interface

The regulatory treatment of custody is different from the treatment of software interfaces. By keeping our wallet non-custodial, we maintain a cleaner regulatory position while still providing a great user experience.

3. Partner with licensed entities

For fiat on/off ramps, we integrate with locally licensed payment providers rather than trying to handle fiat ourselves. This keeps our scope focused on what we do best—building great software.

Technical Architecture Considerations

Your architecture choices have regulatory implications. Here's what we recommend:

• MPC over traditional multi-sig: Better UX, same security guarantees
• Modular KYC providers: Different markets may require different providers
• Event-sourced transaction history: Makes audit compliance straightforward

The Path Forward

Regulation in LATAM is maturing. Companies that build compliance into their DNA now will have significant advantages as frameworks solidify.

We're happy to discuss specific challenges you're facing. Schedule a call to talk through your situation.