Onboarding Friction for High-Volume FX/Crypto Arbitrage - Your Experiences?
Been running a decent volume of cross-exchange arbitrage between spot crypto and FX pairs like $EURUSD, $USDCAD, and I've hit a recurring bottleneck: onboarding new PSPs or even just getting decent credit lines with existing ones. The KYB process often feels disproportionate to the actual risk involved for a regulated entity. We're talking substantial monthly turnover, clear audit trails, and yet the pushback on initial limits or the sheer duration of due diligence can be a serious drag on scaling.
Specifically, I'm curious if others in the high-frequency/high-volume arbitrage space, particularly those dealing with crypto and traditional FX, are encountering similar friction. Are there any particular jurisdictions or types of PSPs that seem more agile in understanding and catering to this kind of operational flow? We're always trying to diversify liquidity and reduce counterparty risk, but the overhead of qualifying and integrating a new partner can eat into potential alpha. Any thoughts on how to streamline this without compromising compliance?
The KYB process is a real pain, especially when you're moving volume. Have you tried approaching smaller, more specialized payment providers? Sometimes their compliance departments are more willing to work with high-volume, low-risk clients if you can demonstrate a clear operational structure.