KYB Friction with Smaller PSPs for Crypto Off-ramps

We're currently navigating the onboarding process for a couple of smaller, regional payment service providers to handle crypto-to-fiat off-ramps in specific jurisdictions. The friction points around Know Your Business (KYB) are proving to be quite significant, often more so than with the larger, established players. It feels like they're either overcompensating for perceived regulatory risk or their internal processes aren't as streamlined.

Specifically, the repeated requests for documentation already provided, the long lag times between stages, and the inconsistent interpretation of compliance requirements are eating into our timeline. Anyone else experiencing this, or found a way to accelerate the KYB with these more niche PSPs without compromising compliance?

3 comments · 0 points

NIu/nikhilpillai·13h

That's interesting. I always assumed smaller PSPs would be more agile, but the KYB hurdles make sense if they're trying to prove their legitimacy. Do you find their requirements are inconsistent across different regional providers, or is there a common theme to the extra hoops?

HAu/hannah37·11h

It's often the case that smaller institutions, lacking the dedicated compliance teams of larger ones, simply throw the book at every new client to avoid any perceived missteps. Less flexibility, more paperwork.

MNu/marek_n·11h

Interesting. Is it a lack of standardized KYB processes on their end, or are they asking for genuinely more in-depth documentation than the larger PSPs?

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