crypto strategy

The guide to a crypto provider alla scelta del giusto Fiat partner

Even in the current crypto bear market, monthly fiat trading volumes are still about $200 billion on average. Fiat remains the primary vehicle through which most people enter the crypto landscape.

It is undeniable that cryptocurrency will play an important role in the global financial system, however, fiat currently plays a prominent role and continued reliance on old fiat strategies could limit a crypto provider’s ability to scale, hinder the growth of crypto technology.

As more and more people embrace cryptocurrency, they deserve efficient and reliable access to crypto. The main problem is that banks and crypto don’t always speak the same language, which makes navigating fiat-to-crypto flow processes time-consuming, complicated, and expensive.

As a crypto provider, you want to give your customers the best possible experience. That means finding a fiat partner who will help you make fast, easy and affordable deposits and withdrawals, but with so many options how can you be sure you’re choosing the right one? Here are the main criteria to consider when selecting a fiat partner that makes your access to banking services simple, reliable and efficient

Technology

You wouldn’t buy a car without testing it, so your fiat technology supplier should be no different. The best partners will also provide APIs that your developers can connect to. These must be easy to understand and integrate.

The last thing you want is for your team to spend hours figuring out how to connect your systems. These APIs will have a sandbox environment that you can integrate with and test before going live, and the sandbox environment will behave exactly like the production environment, except no real money will be moved. This will allow you to smoothly move your integration from sandbox to production.

You will also want to make sure that your fiat partner has a secure system that has undergone penetration testing.

However, when it comes to technology, you’ll want to consider the terms of the Service Level Agreement (SLA). With an SLA in place, if there are any issues with the service, you will know exactly how they will be solved. It is important to always consider partner flexibility with SLAs; it’s fine to have clearly defined SLAs, but if there are pressing issues/disruptions in your business, you want a partner where they have a culture of “getting things done”. If they can demonstrate it, you have the assurance that they are a partner and it is not a transactional relationship.

Knowledge and experience in cryptography and financial services

Your fiat partner should have specialist knowledge of crypto and financial industries. For example, they must understand how crypto platforms work and the specific compliance and regulatory challenges that crypto operators face.

In addition, they must maintain good relations with banks. This is essential because your fiat partner will be your intermediary to the banks; you should explore the stability and reliability of these relationships. Have they been able to help other providers get uninterrupted banking services or at least significantly reduced payment times?

Finally, do they have a good reputation in the industry? This will give you an idea of ​​their reliability and reliability.

Leverage their relationship

A reliable partner will have relationships with several crypto-friendly banks. Choosing a specialist banking-as-a-service (BaaS) provider, like Fiat Republic, will often unlock access to multiple banks, which provides built-in redundancy for each jurisdiction and allows you to use local banks for each local market. ask about the potential shortcomings of your fiat partner. For example, how many banks have they lost as customers? How many late payments were they responsible for?

You should also find out if your fiat partner has a plan to unlock Tier 1 banks. Tier 1 banks are the largest and most prestigious banks in the world; although it may be harder and slower to partner with them, due to stricter due diligence and compliance checks, they offer increased stability and access to better liquidity compared to Tier 2-3 banks .

The integration process

Choose a partner with a seamless onboarding process specifically designed for crypto providers. This will make it much easier for you to get started and save you time and effort. Also, although it takes more time initially, find out about the compliance part of the onboarding process. A robust and in-depth process that delves into specific details regarding KYC, AML and transaction monitoring will ensure the quality of your compliance operations. This will ensure minimal disruptions from banks and will also give you more flexibility and control, where you can take a risk-based approach to each consumer, reducing the need to constantly perform enhanced due diligence on arbitrary transaction limits or introduce KYC-based transaction levels. .

Be sure to check how long the onboarding process will take and when you will have access to live accounts. Sometimes it can take weeks or even months to be approved. If you are in a rush, this could be a major problem. It should also be determined in which jurisdictions your fiat partner operates. If you want to expand into new territory, make sure they will be able to support you.

Regulation and compliance

Before you say yes to working with a fiat partner, you need to dig deeper into their regulatory coverage and track record. Find out where they are regulated and make sure it matches your own track record. The last thing you want is to plan to expand into new territories, only to find your fiat partner can’t support that growth.

It is also important to see how transparent a fiat partner is in communicating its commitment to regulatory requirements. You should also check how they can help you deal with compliance issues. For example, do they act as your first line of defense when you receive RFI requests from banks? Do they give you visibility into transactions when verifying compliance, so you can proactively inform your customers? This can make a big difference to customers, who would otherwise be frustrated and lose trust in you because they don’t understand why their payment hasn’t been processed.

Access to Fiat currencies

You need to consider the number of currencies your fiduciary partner provides access to. Make sure they have the fiat currencies you need for your own international expansion projects, on their roadmap.

You should also consider when the partner will be able to deliver these fiat currencies. In some cases, access to certain fiat currencies can take months or even years. Sometimes the delivery will depend on the bank your partner works with.

Payment schemes are also important, so you need to consider whether the partner has global or local payment schemes. They should be able to provide you with a list of options, such as SEPA Instant, FPS, or ACH instant, and help you decide which best suits your needs.

The essential

Choosing the right fiat partner can be difficult, but it’s important to do your due diligence. Consider your customers’ experience and ensure they can access reliable banking and payment services. Fiat is unlikely to stop being the main access point for crypto anytime soon, so getting this strategy right is crucial.

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