The booming development of blockchain technology and the cryptocurrency market is setting off a wave of global financial change. However, with the increasingly stringent regulatory environment, obtaining a compliance license is only the first step for a company to operate legally. For virtual asset service providers (VASPs), licenses are far from the end, and the key links of opening bank accounts, docking payment channels, issuing encrypted cards, and testing systems are often full of thorns. Blocked applications for multi-currency or crypto-friendly business accounts, and card-issuing schemes stalled due to compliance barriers ...... these challenges are like hurdles that prevent companies from taking a lead in the market. Are you struggling to find a way out? This article will provide an in-depth analysis of the bank account opening and card issuing challenges that VASPs encountered before their official operation, and reveal how Rengang Yongsheng can help you break the waves with professional services and global resources!

Seven-step strategy for the crypto market from compliance to operations

To turn compliance advantages into market competitiveness, we need to cross a series of key links. From applying for a license to formal operation, every step is crucial, but it also hides challenges. The following is a streamlined process for VASPs from license application to business launch to help you clearly grasp the core tasks of each stage.

1. Apply for a cryptocurrency license

Submit applications to regulatory agencies (e. g. Dubai VARA, Swiss FINMA) to meet anti-money laundering (AML), counter-terrorism fund raising (CTF), and other compliance requirements, and obtain legal operating permits such as VASP or Swiss SRO.

2. Prepare compliance documents

Develop AML/KYC policies, submit detailed business plans, evidence of funding sources and risk management plans, and respond to regulatory reviews.

3. Open a bank account

Open multi-currency accounts (such as USD, EUR, GBP) for fund storage and customer transaction settlement.

4. Establish payment channels

Interfacing with Visa, Mastercard or encrypted payment service providers, such as On & Off Ramp, integrates API to support seamless transaction between legal currency and encrypted currency.

5. Issuing encryption cards

Cooperate with card issuers (such as Visa authorized issuers) to launch debit or prepaid cards that support encrypted assets to improve user convenience.

6. System testing and optimization

Fully test the security and stability of accounts, payment channels and card issuing systems to ensure efficient transactions and zero failures.

7. Formal operation

Online trading, hosting or payment services, optimize the user experience, and officially enter the encryption market.

Crypto market pain points revealed: why is it so difficult to open a bank account?

After obtaining a cryptocurrency license, opening a bank account is a core step in the business landing, but the peculiarities of crypto companies often make this step full of obstacles. From the cautious attitude of banks to strict compliance requirements, to the scarcity of multi-currency accounts, VASPs face multiple challenges.

1. Cautious attitude of banks towards crypto business

Status: Cryptocurrency businesses are considered high-risk areas by banks due to their anonymity, high volatility and potential money laundering risks. Global regulators such as the FATF are requiring banks to implement Enhanced Due Diligence (EDD) for crypto businesses.

Difficulty: Some large traditional banks are often more cautious, refusing to open accounts for VASPs outright, or requiring cumbersome compliance documents such as detailed proof of capital flow, customer authentication records and business operations reports.

Impact: Companies need to prepare hundreds of pages of compliance materials, which take months or even half a year and may still be rejected, resulting in limited fund management and business progress.

2. High threshold for compliance requirements

Status: Banks need to strictly comply with international anti-money laundering (AML), anti-terrorist financing (CFT) and local regulatory regulations, requiring crypto companies to prove legal sources of funds, transparent business models, and submit comprehensive risk management plans.

Difficulty: Small and medium-sized enterprises or start-ups often lack a professional compliance team, it is difficult to cope with the bank's complex document requirements and multi-round review process, and the preparation of materials is costly and time-consuming.

Impact: The application for opening an account is rejected due to incomplete documents or non-compliance, or falls into indefinite delay, which directly hinders the flow of funds and market expansion of the enterprise.

3. Limitations of multi-currency accounts

Status quo: VASPs often need to open multi-currency accounts (Multicurrency Account). Such accounts allow holding multiple legal currencies, such as USD, EUR, JPY, CHF, AUD, HKD. In addition to avoiding the risk of exchange rate fluctuations, VASPs can also use accounts in corresponding currencies for collection and payment operations.

Difficulty: Traditional multi-currency accounts usually do not support encrypted currency transactions, involving the exchange of legal currency and encrypted currency. For example, trading encrypted currency (On-Ramp) with legal currency or trading legal currency (Off-Ramp) with encrypted currency requires additional compliance approval. Therefore, many banks refuse to provide such accounts for encrypted enterprises. In addition, multi-currency accounts can be derived into virtual accounts (Virtual Account), allowing multiple sub-accounts under the main account, all of which support multi-currency functionality, but it is more difficult for encryption companies to obtain such accounts because banks are concerned about the complexity of tracking funds.

Impact: Lack of multi-currency accounts makes it difficult for crypto companies to meet the diverse payment needs of global customers, limiting business flexibility and competitiveness.

The difficulty of issuing cards in the encryption market: the game of risk, compliance and marketing.

Issuing encryption cards is an important strategy for VASPs to enhance user experience and expand the market, but from the strict review of card issuers to the high threshold of technical compliance, to the landing of marketing programs, encryption card issuance is full of challenges.

1. Risk assessment of card issuers

Status: Visa, Mastercard and other major card issuers are highly cautious about the issuance of encryption cards, worried about the risk of unknown sources of funds or illegal transactions, and need to strictly comply with AML and CFT regulations.

Difficulties: encryption cards need to seamlessly connect block chain wallets with traditional payment networks, increasing the complexity of compliance and security management. Card issuers often require enterprises to submit detailed risk assessment reports. For example, the review cycle of card issuers is generally 2-3 months. If you apply directly to the card organization, it may take 6 - 12 months or even longer.

Impact: High-risk assessment thresholds lead to project delays or rejections, and some companies abandon their card issuance plans because they cannot meet the requirements.

2. Technical and Compliance Requirements

Status: The issuance of encrypted cards needs to meet the issuer's compliance standards, such as PCI DSS, KYC/AML, and integrate payment processing systems to support real-time cryptocurrency to fiat currency conversion, which needs to meet EMV chip card standards.

Difficulty: Small and medium-sized enterprises often lack the development of block chain payment interfaces, fail to comply with PCI DSS and other verification, technical team energy or ability is limited, resulting in high technology integration costs and long cycle.

Impact: The double threshold of technology and compliance makes the card issuing project progress slowly. Although the white card issuing solution reduces the technical barriers, the strict compliance requirements still deter enterprises.

3. encryption card marketing plan landing consultation

Status quo: Encrypted cards attract users through convenient consumption, brand exposure and market expansion, but in a highly competitive market, precise marketing solutions need to be designed to target audiences, such as encryption investors or blockchain enthusiasts.

Difficulty: Designing incentives favored by users, such as cash back on cryptocurrency purchases, transaction fee discounts, etc., needs to balance technical feasibility and implementation difficulty. For example, the development of blockchain points system, integrated wallet applications and other technical solutions require a large amount of investment, while balancing costs and effects to ensure the marketing input-output ratio.

Impact: Lack of professional marketing programs may lead to low user participation, limited market share of encryption cards, and lower-than-expected return on marketing investment.

Rengang Yongsheng-The Best Partner to Help You Pass the Encryption Market

Rengang Yongsheng relies on global resources and professional services to help you quickly build bank accounts and payment channels compatible with encryption business. We match the most suitable bank and card payment solutions for you to quickly turn compliance advantages into market competitiveness.

Our in-depth understanding of key markets such as Hong Kong, Singapore, Malaysia, Europe and North America not only provides customized compliance solutions for local companies, but also helps you to efficiently open multi-currency accounts for collecting payments from customers, remitting funds into foreign currency accounts, paying overseas employees' salaries and other needs.

If you plan to issue an encryption card, Rengang Yongsheng offers two Visa licensing solutions:

MPI license holder: support USDT recharge (local currency HKD)

MSO license holder: support USDT and USDC recharge (local currency SGD)

US dollar card is subject to the specific circumstances and approval of the issuing bank is required.

Card issuing fees at a glance:

The above fees are for reference only and may be adjusted according to the issuing bank and regulatory requirements.

Enterprises need to accurately select the card issuing scheme according to the needs of target users and market strategies to achieve the best market effect, and Rengang Yongsheng will provide you with professional and detailed information services. Contact Rengang Yongsheng for free consultation immediately to unlock the one-stop solution and help your encryption business lead the market!

This article is for industry reference only and does not constitute legal or investment advice. For specific compliance programs, please consult professional advisors.