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## Fiat Payment Rails and Neobanking Services Driving Mainstream Adoption of Cryptocurrency

The increasing importance of fiat payment rails and neobanking services in promoting mainstream adoption of cryptocurrency has been emphasized by industry figures at the intersection of traditional finance and Web3. This was discussed during the recent European Blockchain Convention held in Barcelona, where executives from OpenPayd, Ramp Network, and Damex shared their insights.

OpenPayd, led by CEO Iana Dimitrova, processes over Ôé¼3 billion in monthly transaction volume and has issued more than 2 million accounts, including leading cryptocurrency exchanges like Crypto.com. OpenPayd’s primary focus is providing banking and payment infrastructure for various industries, including cryptocurrencies.

According to Dimitrova, there is a growing level of mistrust among regulators and traditional payment railholders, such as SEPA or SWIFT, regarding the crypto world. Bridging this gap requires fiat on-ramps and payment rails to address concerns about identity, traceability, and money laundering that traditional financial institutions and regulators associate with cryptocurrencies.

Damex, a Gibraltar-based firm, specializes in providing fiat on and off-ramps for higher risk category clients, including iGaming, Forex, family offices, and hedge funds. Clients of Damex often face reputational issues with their bank accounts due to their involvement in the cryptocurrency ecosystem. Samuel Rondot, the company’s managing director, suggests that banks’ reluctance to embrace cryptocurrencies stems from a misunderstanding of the tool and its principles.

To address these challenges, services like OpenPayd and Ramp have emerged as specialist actors that understand and facilitate Anti-Money Laundering (AML) and Know Your Customer (KYC) processes. They act as intermediaries, shielding traditional banks from direct engagement with cryptocurrency-related businesses. For instance, using an OpenPayd IBAN for a crypto-to-fiat payment enables a smooth transfer to a main bank account without raising any concerns.

Ramp Network, led by CEO Szymon Sypniewicz, offers a single API platform to connect global fiat systems. Their infrastructure allows crypto-related businesses to offer credit cards, debit cards, local payment methods, and bank transfers for users to acquire cryptocurrencies or pay for services. The goal is to seamlessly transition users to crypto-enabled products while maintaining the familiarity of traditional financial setups.

However, crypto-native businesses still face difficulties in opening bank accounts or accessing payment rails due to the disparity between emerging and existing financial technologies. The incumbents’ banking technology doesn’t meet the innovation, speed, and agility required by these businesses. Infrastructure providers like OpenPayd and Ramp bridge this gap by aggregating different payment rails, banks, and channels, offering a unified service and experience across multiple jurisdictions and currencies.

Compliance standards also play a crucial role in the wider adoption and acceptance of crypto-native businesses. The development of the European Union’s Markets in Crypto-Assets (MiCA) framework is expected to provide a common foundation for both Web3 and traditional finance players to operate more seamlessly.

In this context, AI legalese decoder can assist in navigating the complex legal and regulatory landscape surrounding cryptocurrencies and financial services. It can analyze legal documents and decipher legalese, enabling businesses to understand their compliance requirements and ensure they meet the necessary obligations. Additionally, the AI legalese decoder can help streamline the onboarding process for crypto-related businesses by automating the identification and verification of customers, enhancing the efficiency and security of AML and KYC processes.

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