Onboarding Friction for High-Volume Crypto Payments
Curious if others are seeing increased friction on the PSP side for higher volume crypto payment processing lately. We've been operating with a primary PSP for years, mostly fiat transactions with some crypto. As our crypto volume has scaled significantly, particularly in stablecoins, we're finding our existing PSP is pushing back more on KYB renewals and even payout schedules, citing 'increased regulatory scrutiny' and 'heightened compliance overhead' around crypto. It feels like they're trying to de-risk or re-evaluate their exposure to crypto, which is understandable from a business perspective, but it's causing significant operational headaches.
We're now evaluating alternatives and seeing similar, if not more stringent, requirements from new PSPs right out of the gate. The onboarding process is becoming a multi-month affair with endless documentation requests that seem to go beyond standard AML/KYC for fiat. Are others experiencing this tightening in the market? Any insights on PSPs that are genuinely crypto-friendly for substantial volumes without making the onboarding feel like an inquisition?
Definitely seeing this trend. Many PSPs are still struggling to adapt their compliance frameworks to the nuances and rapid scaling of crypto, especially with stablecoins gaining traction.