How can Solaris balance the need for strict compliance measures in its crypto custody service against providing a seamless user experience for crypto trading?

Introduction

Balancing strict compliance measures in Solaris' crypto custody service with a seamless user experience for crypto trading presents a significant challenge. This scenario involves navigating regulatory requirements while maintaining user satisfaction and engagement. I'll analyze this trade-off by examining the product ecosystem, identifying key metrics, designing experiments, and providing a strategic recommendation.

Step 1

Clarifying Questions (3 minutes)

• Based on the current regulatory landscape, I'm thinking compliance is a non-negotiable aspect. Could you provide more context on the specific compliance measures we're considering and their potential impact on the user experience?

Why it matters: Helps understand the severity of the trade-off and potential areas for optimization. Expected answer: Details on KYC/AML requirements, transaction monitoring, and custody controls. Impact on approach: Would influence the balance between compliance and UX in the solution.

• Considering our business model, I assume trading fees are a significant revenue source. How does the current user experience impact our trading volumes and revenue?

Why it matters: Establishes the financial stakes of the trade-off. Expected answer: Detailed breakdown of trading volumes, user retention, and revenue metrics. Impact on approach: Would help prioritize UX improvements that directly impact revenue.

• Looking at our user segments, I'm curious about the distribution between institutional and retail traders. Can you share insights on how these segments interact with our current compliance measures?

Why it matters: Different user segments may have varying tolerance for compliance friction. Expected answer: Breakdown of user segments and their behavior patterns. Impact on approach: Would allow for tailored solutions for different user types.

• From a technical standpoint, I'm wondering about the current integration of our compliance checks in the user flow. How modular is our current architecture, and what's our capacity for implementing more seamless compliance checks?

Why it matters: Determines the feasibility of technical solutions to improve UX without compromising compliance. Expected answer: Overview of current architecture and potential for improvements. Impact on approach: Would influence the types of solutions we could realistically implement.

• Considering our product roadmap, how does this trade-off align with our long-term strategy for the crypto custody service?

Why it matters: Ensures any solution aligns with broader company goals. Expected answer: Insights into strategic priorities and future plans for the service. Impact on approach: Would help frame the solution within the context of long-term product evolution.