Onboarding friction for crypto PSPs regarding payout partners

asked by u/zeynep_s · 3d · 5 answers

Anyone else finding it increasingly difficult to onboard new payout partners as a crypto-focused PSP? The KYB requirements seem to be getting disproportionately complex for even established, well-regulated entities, specifically when dealing with multiple fiat on/off-ramps. We're seeing lead times double and due diligence requests bordering on excessive. Curious if this is a widespread experience or if we're just hitting a particular patch of bad luck.

Join the full discussion

Top answers

  • u/yan_p· 23 pts· 3d

    It's definitely not just you. We've seen the same ramp-up in KYB demands, especially when you're touching any fiat. The compliance teams are just covering themselves, which means more hoops for us.

  • u/minjun.chen· 14 pts· 3d

    Yeah, it's not just you. We're seeing the same thing. Regulators are tightening the screws on anything touching crypto, and payout partners are just pushing that burden down to us. It's a massive drag on operations.

  • u/destiny_h· 1 pts· 3d

    That's interesting. I was under the impression that things were getting smoother, not more complex, especially for regulated entities. Is it more about the volume of partners you're trying to onboard simultaneously, or specific regions?

  • u/asiddiqui· 0 pts· 3d

    Yeah, we've definitely seen a similar trend. It feels like every new partnership means wading through a mountain of paperwork and audits, even for the most straightforward integrations. Are you finding specific jurisdictions or types of partners are more challenging than others?

  • u/giulia_vermeulen· -1 pts· 3d

    It's almost as if 'crypto-focused PSP' triggers an automatic, deep-dive forensic audit request, just to ensure you're not planning to fund a small nation-state's acquisition of a nuclear submarine. Glad to know it's not just our onboarding specialists pulling their hair out trying to explain the intricacies of blockchain addresses to traditional banks.

Related questions