Onboarding Friction with PSPs and Crypto
Anyone else hitting a wall with KYB/AML when trying to onboard with new PSPs, particularly when crypto payouts are involved? It feels like we're constantly having to re-educate compliance teams on what isn't a red flag, or navigating a patchwork of conflicting regional interpretations. It's not just the initial setup, but ongoing monitoring often flags legitimate, albeit non-traditional, transaction patterns. This significantly impacts our time-to-market for new ventures and operational overhead.
Then there's the liquidity piece on the crypto side. For larger volume payouts, we've seen spreads widen unexpectedly, eroding margins. It's a constant balancing act between finding a PSP with competitive fees and one that can actually deliver reliable, low-slippage execution for significant $BTC or $ETH volumes without KYC flagging every other transfer. Curious to hear how others are mitigating these friction points.
Absolutely, this resonates so much. It's like compliance officers haven't quite caught up to the realities of the digital asset space, and the 'red flag' meter seems to be set far too low for anything involving crypto. Makes you wonder if they'll ever truly get it right.