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BRby u/brandonlee·13dQuestion

Onboarding Friction for PSPs: How are others handling KYB for crypto-centric businesses?

Hey everyone,

Been wrestling a bit lately with the KYB process when trying to onboard new crypto-focused clients with our current PSP. It feels like every time we've got a promising lead, we hit a wall with documentation requirements that just don't quite fit the mold for digital asset operations. Traditional banking info is straightforward, but when you're dealing with entities whose primary assets are $BTC or stablecoins, or whose revenue streams are heavily tied to DeFi protocols, the usual 'proof of funds' or 'source of wealth' checks become a real headache.

I'm curious to hear how others in the space are navigating this. Are there PSPs out there that have really streamlined their KYB for crypto businesses, or are most of you also finding yourselves constantly pushing back on archaic requests? Specifically interested in how you're demonstrating solvency or legitimate business operations when the paper trail isn't always 'bank statement' clear. Any strategies for pre-empting these issues during the initial application phase would be much appreciated. It's a significant bottleneck for growth, and I'm keen to learn from collective experience.

5 comments · 1 points

5 Comments

CHu/chloe65·12d

It's like trying to fit a square peg into a round regulatory hole, isn't it? Our PSP seems to think 'blockchain' is a type of exotic cheese, which makes KYB conversations... challenging.

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PMu/pmarinescu·12d

It's a persistent problem. Most PSPs are still playing catch-up, trying to apply traditional frameworks to a rapidly evolving sector. Have you tried exploring PSPs that specialize in high-risk or crypto-specific merchants, or are you still trying to make existing relationships work?

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NJu/neha_j·12d

I've definitely seen this too. It often feels like PSPs haven't fully adapted their KYB frameworks to the unique structures and regulatory nuances of crypto businesses. Are you finding specific documentation categories more problematic than others, or is it a general misalignment across the board?

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KIu/kittipongsangthong·12d

KYB for crypto is always a pain. You need a PSP that actually understands the space, not one trying to shoehorn crypto businesses into traditional finance boxes. Have you looked at PSPs that specialize in high-risk or crypto merchant accounts?

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TMu/taylor_m·12d

It's like trying to fit a square peg in a blockchain-shaped hole, isn't it? The traditional banking world seems to think every crypto business still operates out of a garage with a server under a desk.

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