The Virtual Asset Service Provider (VASP) landscape in Europe is evolving rapidly. With thousands of registered VASPs across the EU now navigating MiCA (Markets in Crypto-Assets Regulation) requirements, the industry is gaining legitimacy but also facing challenges in banking, liquidity management, and scalability.
At Fipto, we have spent the past few months speaking with hundreds of VASPs across Europe to understand their needs and explore solutions that help them scale their brokerage efficiently while staying compliant.
The Critical Challenges Faced by European Crypto Brokers
Operating a crypto brokerage comes with unique challenges. To succeed, businesses must seamlessly connect fiat money with digital assets while ensuring regulatory compliance. This requires overcoming key hurdles, including:
- Complex infrastructure management: Running a crypto brokerage requires juggling multiple vendor relationships and technical integrations. Each new banking partner, custody solution, or liquidity provider demands extensive due diligence, lengthy API implementations, and constant monitoring. This creates a significant drain on technical resources and operational bandwidth.
- Stringent compliance requirements: With MiCA in Europe and national regulations constantly updating, VASPs continuously face the challenge of staying compliant. This means regular updates to Know Your Business (KYB) procedures, Anti-Money Laundering (AML) protocols, and Counter-Terrorist Financing (CFT) measures – all while maintaining smooth operations. When dealing with various liquidity providers instead of using a one-stop shop solution, meeting your own and the other KYB and AML standards demands robust systems and continuous monitoring, which significantly increases costs.
- Less favourable rates: Without direct access to multiple liquidity sources for currency conversion and trading, brokers can struggle to offer competitive rates while maintaining healthy margins.
These challenges not only hinder growth but also prevent VASPs from optimising their business potential.
A Better Way Forward with Fipto’s API
With the needs expressed by VASPs in mind, we designed a plug-and-play solution to save on integration costs and unlock a comprehensive fiat & crypto infrastructure powered by top-tier banking and liquidity partners. This unified infrastructure combines liquidity aggregation, instant quoting and settlement, seamless fiat-crypto rails, and robust compliance frameworks, enabling brokers to focus on growth and client service rather than operational complexity.
Here are the main features Fipto provides to VASPs:
Streamlined Multi-Currency Operations
An account infrastructure offering both fiat and crypto accounts that are connected to major payment networks.
- Unlimited named EUR IBANs and crypto wallets enabling effortless handling of fiat and digital assets
- A hybrid account infrastructure natively connected to regional and international payment networks for fast fiat deposits and withdrawals.
Institutional Grade Security & Compliance
Security and compliance are at the heart of Fipto’s operations. With enterprise-level custody and advanced wallet security through Multi-Party Computation (MPC) technology, your assets remain protected.
Fipto also ensures compliance with the highest European standards allowing you to operate with confidence, including:
- VASP registrations in France and Luxembourg
- KYB/AML monitoring designed specifically for B2B relationships between financial institutions;
- ISO/IEC 27001:2022 certification for robust security protocols.
Seamless Trading and Liquidity Solutions
Supporting over 30 currencies, including major fiat, stablecoins, and cryptocurrencies, Fipto’s platform simplifies currency conversion with two OTC solutions:
- Self-serve eOTC: €1,000 to €500,000 with instant quoting and settlement
- Dedicated OTC desk for larger transactions
This eliminates the need for multiple exchange accounts, saving time and resources.
With liquidity aggregation, you always get the best rates, while our hybrid infrastructure ensures fast fiat deposits and withdrawals through established payment networks.
Seamless API integration
Fipto’s API-first approach offers unmatched flexibility to integrate its services directly into your stack. In one integration; you can add a whole suite of solutions to your offering, from multi-currency accounts to on/off-ramp solutions while remaining fully compliant, empowering you to scale effortlessly.
Enhanced User Management and Reporting
Fipto’s platform includes multi-user access with customisable roles and permissions, making it ideal for collaborative environments. Its integrated accounting and reporting tools provide precise asset valuation and transaction logs, ensuring compliance with financial reporting standards and simplifying tax filing.
Ready to Transform Your Brokerage?
Join the network of crypto brokers already leveraging Fipto’s infrastructure to streamline operations, enhance liquidity, and drive growth. Our suite of services ensures that your brokerage is equipped to meet today’s demands and tomorrow’s opportunities. Get started with Fipto today.
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