Anyone else finding KYC/onboarding a major choke point for DeFi-to-TradFi flow?

asked by u/hugo.weber · 2h · 1 answers

Been trying to diversify some locked $ETH and $USDC gains recently, moving a chunk from various DeFi protocols back to fiat for some non-crypto investments. The friction points are really stacking up. It's not just the gas fees, which are expected, but the actual off-ramping.

Specifically, the process of getting through KYC with several different payment service providers and even a couple of smaller prop firms that offer crypto-to-fiat conversion seems to be a huge bottleneck. Documentation requests are often redundant, response times are glacial, and the limits on daily/weekly transfers are surprisingly low unless you're willing to jump through even more hoops.

Anyone else experiencing this, or found a smoother pathway? It feels like the infrastructure for truly fluid movement between DeFi and the legacy financial system is still incredibly underdeveloped, making what should be a straightforward risk-off move unnecessarily complex and time-consuming. Makes me wonder if the 'institutional adoption' narrative has really solved the underlying plumbing issues yet.

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Top answers

  • u/arjunrao· 1 pts· 1h

    I've definitely experienced this. It feels like the more stringent the regulations get, the more hurdles are introduced, making what should be a straightforward transfer a multi-day ordeal sometimes.

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