Lysis Group has been providing comprehensive governance support and compliance services to firms operating in the crypto and digital assets sector since 2020. Our work spans various domains including governance, compliance, regulatory support, training, operational enhancements and managed services.
Lysis has helped multiple firms obtain regulatory authorisation/registration from regulators, in particular the UK Financial Conduct Authority (FCA) and the Central Bank of Ireland (CBoI). We also have experience of the regimes in Luxembourg, Lithuania, Malta and the UAE. This process is now crucial for crypto asset firms to operate legally and effectively within each regulated jurisdiction. Lysis has supported numerous firms in navigating the complex regulatory landscape, ensuring they meet all necessary requirements. We have a strong track record of supporting successful applicants from digital asset exchanges and custodians.
Lysis has provided interim Money Laundering Reporting Officers (MLROs) and Deputy MLROs in support of several AML registrations.
Lysis has assisted several digital asset firms to conduct an EWRA to understand their risk properly and to then derive a suitable risk and controls framework and RRM.
We have advised firms on appropriate risk and compliance governance structures and how these should interact with activities such as new product development, customer communication and marketing. We have supported several firms in setting up appropriate UK-based governance structures and implementing the Three Lines of Defence model.
Lysis has extensive experience of enhancing the compliance frameworks of crypto firms, either as part of a permissions application or more generally to ensure the firm is meeting its compliance obligations efficiently. Lysis has assisted firms in drafting and embedding comprehensive AML policies and procedures.
Lysis has developed and delivered bespoke Anti-Money Laundering (AML) training programmes tailored to the specific needs of the crypto sector. These training programmes cover a wide range of topics including the risks associated with cryptocurrencies, regulatory requirements, and the implementation of effective compliance frameworks. Our training also helps AML staff understand financial crime typologies and the specific red flags in digital assets.
Lysis has also been involved in addressing operational challenges faced by crypto firms. Theyhave provided consultancy support to streamline their processes and improve overall efficiency.
Lysis has conducted multiple KYC remediation projects, run QA teams and cleared transaction monitoring backlogs for digital assets firms.
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A UK-based Crypto custodian with a global reach need to meet a regulatory requirement for all personnel to undergo specific training successfully delivered by Lysis.
A UK domiciled crypto exchange with global reach had a regulatory requirement for crypto Money Laundering Reporting Officer (MLRO) support.
A crypto asset firm domiciled in the US asked Lysis to support the firm's financial crime framework and policy creation for transaction monitoring across the UK, US, and for the rest of the firm's global customer base to improved risk management, quality and increased operational efficiency.
Although the client is based in the US, they have European subsidiaries which include the UK and therefore required Financial Conduct Authority (FCA) registration. In order to obtain registration as a crypto asset firm in the U.K. they had to comply with specific FCA requirements.
A crypto asset business, a subsidiary of a US Nasdaq-listed company requested assistance with the process to obtain FCA registration. Lysis provided the client with a highly experienced MLRO and compliance team who worked with senior management to implement required controls and processes. The client was successful in obtaining FCA registration.
Lysis reviewed the exchange’s AML/CTF framework which resulted to a successful maturity assessment review.
A major European-domiciled Cryptoasset Exchange with global reach required a gap analysis to identify all deficiencies in their Customer Risk Rating Model and a roadmap for improving it.
