Background:
A leading Crypto On-Ramp Provider, hereafter referred to as “CryptoGateway,” specialized in offering white-label solutions to various clients, enabling them to facilitate the purchase of cryptocurrencies with traditional payment methods. However, CryptoGateway faced significant challenges in complying with the newly introduced Visa Integrity Risk Program (VIRP) requirements, which are critical for operating legally and securely within the Visa payment ecosystem.
Challenge:
CryptoGateway struggled to understand and implement the specific controls and oversight processes required by the Visa VIRP, particularly in areas related to due diligence, merchant registration, and ongoing monitoring of high-integrity risk merchants, including those involved in cryptocurrency transactions.
Solution:
Material Connections LLC provided a comprehensive suite of services to address CryptoGateway’s challenges:
- Regulatory Guidance:Material Connections delivered expert guidance on the Visa VIRP, clarifying the program’s requirements and how they applied to CryptoGateway’s operations and its white-labeled solutions.
- Compliance Strategy Development: Developed a tailored compliance strategy that included detailed processes for conducting enhanced due diligence on merchants, ensuring that all VIRP registration requirements were met for both CryptoGateway and its clients.
- Operational Implementation: Assisted in implementing the necessary operational changes, including the integration of advanced KYC and anti-money laundering (AML) measures, to comply with Visa’s guidelines for crypto on-ramp providers.
- Visa Registration Support: Guided CryptoGateway through the Visa registration process, ensuring that all documentation was accurately prepared and submitted, leading to successful registration under the VIRP.
Outcome:
CryptoGateway successfully met Visa’s VIRP requirements for crypto on-ramp providers, enabling it to continue offering its white-labeled solutions without interruption. The company also enhanced its reputation for compliance and security, attracting new clients looking for a reliable crypto on-ramp solution.