Points of Focus

• Building high-volume neobanks or stablecoin businesses is easier with lax KYC and AML.
• Bad actors or regulators can often expose whether the platform has robust compliance.
• A stronger approach is building compliance plumbing first, then acquiring users from weaker competitors.

According to Imran Khan, a partner with Alliance General, building a neobank or stablecoin business with high transaction volume and total payment volume (TPV) is relatively easy when your Know Your Customer (KYC), Anti-Money Laundering (AML), transaction monitoring, and risk controls are lax. You can get momentum and grow quickly by being loose with controls.

Building a neobank or stablecoin business with high transaction volume and TPV is relatively easy when your KYC, AML, transaction monitoring, and risk controls are lax. You can get to momentum and grow quickly by being loose with controls.

The real test comes when bad actors…

— Imran (@lmrankhan) July 19, 2026

In a post shared on X, Imran posited that the real test comes when bad actors arrive, regulators start asking questions, or something breaks. At that point, the question is whether your platform has the compliance infrastructure, controls, and legal protections to protect customers and survive.

Why weak controls create early momentum

The path to rapid growth in stablecoin and neobank businesses is well documented. Lax KYC and AML procedures lower friction for users, enabling faster onboarding and higher transaction volumes in the early stages. This approach allows platforms to achieve impressive TPV numbers and attract attention from investors and users seeking convenience.

Neobanks make up 19% of bank accounts globally but only about 5% of retail banking revenues, according to a report from consulting firm Simon-Kucher.

Since 2024, neobank growth has become concentrated among a small group of leaders.

So how can new entrants stand out? pic.twitter.com/b40LpTZGDw

— Veda (@veda_labs) July 21, 2026

However, this momentum is often at the cost of robust risk management systems that are essential for long-term sustainability. Without strong controls, platforms become vulnerable to bad actors exploiting gaps in transaction monitoring or compliance frameworks.

The real test bears regulatory scrutiny

The real test for these businesses emerges when regulators begin asking questions or when operational incidents expose weaknesses. At that point, the lack of proper compliance infrastructure can turn what appeared to be product-market fit into a significant liability.

every neobank says they're targeting LATAM.

then you look at the team and there's no one who actually understands the region.

latam isn't one market.

it's 9+ countries, each with its own culture, regulations, and way of doing business.

everyone wants a piece of the…

— eric (@defyneric) July 20, 2026

Platforms that prefer to place speed over robust controls often find themselves facing enforcement actions, fines, or loss of user trust. This is a pattern that has played out many times in the crypto industry, where early growth shielded vulnerabilities that would become obvious under the weight of regulatory pressure.

Building compliance first creates long-term resilience

Imran’s position is that the better strategy is to build strong compliance plumbing from the start, even if that means accepting slower initial growth. This approach allows platforms to withstand regulatory scrutiny and operational challenges while positioning them to poach users from competitors that eventually falter.

Therefore, by investing in proper KYC, AML, and risk management systems early, businesses can create a foundation that supports scalable and defensible growth. The industry has seen instances where stronger compliance-focused players have gained market share as weaker competitors encounter difficulties. A prime example is the impending BitMEX shutdown, which is due in September 2026.

🚨 The CLARITY Act text just dropped!

For the first time in 250 years, a president agreed to an ethics provision restricting his own conduct. Trump, banned from issuing or sponsoring digital assets for profit.

15 days to pass it before recess. After that, elections, new… pic.twitter.com/7bGUOiqliD

— Dan Gambardello (@dangambardello) July 22, 2026

Ultimately, his warning serves as a reminder that in crypto, strong compliance is more important than early momentum built. When the reverse is the case, it can quickly turn into a liability. Platforms that invest in strong KYC, AML, and risk controls from the beginning may grow more slowly at first but are better positioned to survive scrutiny and capitalize on opportunities when weaker competitors face challenges. In the current regulatory environment, this disciplined approach is becoming increasingly important for long-term success in stablecoins and neobanks.