Elliptic(@elliptic):🏦 Financial institutions assess new counterparties by asking them questions. For most counterparties, a bank cannot independently observe how they handle the flows they describe, so the bank verifies what it can and takes the rest on the counterparties' word. For virtual asset service providers, or VASPs, there is more to work with, as much of their activity sit on a public ledger. A bank can test an applicant's account of itself, both the controls it claims to run and the risk profile it claims to have. The due diligence questionnaire is still where you start. It just isn't where the assessment has to end.

2026.08.20 15:05

🏦 Financial institutions assess new counterparties by asking them questions. For most counterparties, a bank cannot independently observe how they handle the flows they describe, so the bank verifies what it can and takes the rest on the counterparties' word. For virtual asset service providers, or VASPs, there is more to work with, as much of their activity sit on a public ledger. A bank can test an applicant's account of itself, both the controls it claims to run and the risk profile it claims to have. The due diligence questionnaire is still where you start. It just isn't where the assessment has to end.