Most crypto-currency exchanges find it extremely difficult to obtain access to banking when it comes to US Dollar pay-outs and pay-ins. Why is this? The simple answer is because they are either not flexible, or don’t have the patience to follow it through. Watch this short video to have a 10,000 feet view on this cryptocurrency problem and how to go about addressing it.
Hello. My Name is Faisal Khan. I am a banking and a payment consultant. A great question I got in the email is can crypto exchanges, crypto only exchanges get access to U.S. dollars pay in and pay out. Is that possible? Is it easy? And is it even doable in this day and age?. The answer is yes, of course it’s doable. I mean, you know, the possibility exists. But let me explain it before we go along.
Alot many crypto exchanges popped up in 2018. Most of them were crypto only, and it was before a reason; they couldn’t find access to banking, they didn’t have to deal with the headaches of compliance, and all the other things that came with, you know, access to banking, and Fiat conversions and so forth. So, they decided to remain crypto only. And besides you know there was a plenty of source code out there that one could buy or purchase or modify to run an exchange in the crypto only mode. These crypto exchanges don’t have to deal with the crypto to fiat and fiat to crypto conversions and all the documentation and paperwork required by the financial institutions, the KYC, the very stringent KYC requirements etc. So, you know they were very happy in being crypto only. But needless to say you know at some point in time you want to cash out, and exchanges that offer US dollar cashouts, or GBP or Euro cashouts, payouts are the ones that are draking in the traffic.
So, you know the answer is yes it’s doable. The process is lengthy and before I explain the process let me explain, maybe, giving an analogy; it’s like a marathon, 26 miles. There are no brownie points for finishing on 24 miles or 20 miles. That’s quitting in this game. 26 miles – is after way the reward is. If you quit before, nothing is going to happen. It takes between three to six months. That’s the process. And in this three to six months you would most likely have to read a line or retweak your business processes. You will have to make sure that no P2P transaction can occur, that no person to person transactions can occur. That the transactions are classified as B2C or C2B or B2B.
You would have to do in a lot of work with respect to the audits, the KYC, the extended KYC, how do you store that information, how you flag it, how you mask it, how your privacy concerns are addressed etc. All of these things take time and it’s the compliance that will basically go back and forth, back and forth asking you know we don’t like your systems doing this. Maybe you can do this and if you’re inflexible about it, then you know games up. You know, they don’t want to talk to you. But, if you’re flexible, if you’re willing to go the mile, if you’re willing to work hard, then the reward is there.
I’ve seen too many exchanges get into the game. They’re almost are at the end and then they throw in the towel. It’s fatigue, it’s investor fatigue, it is time fatigue, it is compliance fatigue, it is processes fatigue, it’s IT fatigue. There’s so many reasons, but they give up, and they give up like the fourth month, or they give up an after three months etc. When they could have had dollar clearance in another two weeks or four weeks. But you know that’s the unfortunate part.
So, if you’re patient, flexible and committed to the cause, the solution is there. And if you’re not, you know, quit early and you’ve lost out. So, yes crypto only exchanges can get US dollar payouts, can get GBP payouts, Euro payouts, but it’s a long drawn process between three to six months and you have to be committed to it and be flexible enough.
If that’s what you are and you know if that’s what you’re willing to do then there is a solution out there. If you’d like to get in touch with me there is a contact form in the details below, fill it in and I’ll be happy to answer it. Till next time, have a good one.