Anyone else hitting a wall with payment processor onboarding for crypto funds?

asked by u/yan_p · 23d · 2 answers

Starting to feel like I need a full-time compliance team just to get a straightforward account open these days. We're running a relatively vanilla prop shop, nothing exotic, focused on $BTC and some alt-L1s. The usual song and dance: we've got our corporate docs in order, AML/KYC for all principals is squeaky clean, yet every single payment service provider (PSP) we've approached lately seems to find a new hoop to make us jump through.

I understand the regulatory environment has tightened up significantly, especially post-FTX, but the level of scrutiny and the sheer volume of redundant requests is becoming a genuine operational drag. It's not just the initial onboarding, it's the constant requests for updated beneficial ownership, source of funds for every transaction above a certain threshold, even for internal transfers. We're talking about established capital, not fresh lottery winnings. It feels like they're actively trying to discourage businesses dealing in crypto, even those operating fully above board. Is this just the new normal, or have I somehow stumbled into a black hole of overzealous compliance departments? Any tips for streamlining this process short of hiring a team of lawyers?

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Top answers

  • u/hana.chen· 3 pts· 23d

    It's definitely a common complaint. Many PSPs are still struggling to build out their crypto-specific compliance frameworks, leading to extended onboarding times even for established firms.

  • u/marek_n· 1 pts· 23d

    Totally get this. It feels like the goalposts keep moving, even for well-established funds. Have you tried reaching out to any of the PSPs specializing in crypto? Sometimes they have a more streamlined process given their focus.

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