I founded COREDO in 2016, and since then the COREDO team has carried out dozens of projects for company registration abroad, payment service licensing and setting up AML controls. Over that time I developed a simple rule: any integration of a crypto-fiat gateway is not about “quickly connecting an API”, but about the strategic architecture of the business, jurisdictions and processes. When an entrepreneur sees the on‑ramp/off‑ramp only as a “buy crypto for EUR/USD” button, they underestimate compliance, liquidity and the economics of conversions.
In this article I will lay out the regulatory requirements (MiCA, PSD2, AMLD5/6, Travel Rule), the architecture of a crypto-fiat gateway from the mobile app to the back office, KYC/KYT practice, integration of cards and banking rails (SEPA, SWIFT, ACH), project economics and the roadmap. I draw on concrete project experience in the EU, the Czech Republic, Slovakia, Cyprus, Estonia, the United Kingdom, Singapore and Dubai, and I will explain where real bottlenecks occur and how to work around them without losing transparency and SLA.
Why businesses need a crypto-fiat gateway
Customers expect a simple fiat on‑ramp and fiat off‑ramp: top up the balance by card or SEPA, buy an asset, lock in profits, withdraw to a bank account. Behind that simplicity is a complex chain of PSPs/EMIs, liquidity providers, blockchain analytics and AML transaction monitoring. If one link falters, you see increased declines, chargebacks and a drop in LTV.
In COREDO projects crypto‑fiat gateways often become the core of the product: thanks to a SEPA fiat gateway for cryptocurrencies, USD/EUR fiat exchange in the app and proper payment routing via PSD2 open banking API. It’s important to decide where to hold funds (custodial storage vs non‑custodial solution), how to manage liquidity between exchanges and payment providers, and how to maintain conversion without compromising AML.
MiCA, PSD2, AMLD5/6 and the Travel Rule
In the EU the approach is shaped by MiCA, PSD2 and the AML directives (AMLD5/AMLD6) together with the recommendations of the FATF. MiCA outlines the contours for VASP and stablecoins, PSD2: for payment rails and AISP/PISP integrations, AMLD: for KYC/CDD, sanctions screening and governance procedures. In practice this means: KYC for crypto-fiat gateways is mandatory, KYT (Know Your Transaction) in real time is the standard, the Travel Rule is part of the operational framework.
Sanctions screening (including OFAC) becomes a mandatory step. I recommend building an AML profile in multiple layers: primary KYC/CDD via Trulioo/Jumio/Onfido, behavioral anti-fraud and device fingerprinting, blockchain analytics via Chainalysis, and rules for managing AML false positives. The solution developed at COREDO for one of the European on-ramp providers reduced false positives by 28% without degrading onboarding speed.
Licensing and corporate structure
Where to obtain permissions and how to organize the corporate structure is the first strategic choice. A mistake here means months of downtime and frozen accounts. I always start by mapping target markets, payment rails, operating currencies (EUR/USD/GBP/SGD), the custody model and the required margin.
EU: VASP registration and EMI/PI
In the EU two paths are popular: an EMI or PI license (e‑money/payment institution) for fiat rails and registration/authorization for virtual asset providers. Lithuania has become an EMI hub thanks to clear requirements and work with SEPA/SEPA Instant; Cyprus is actively advancing CASP registration and payment licenses, providing a bridge between the EU and the Middle East.
COREDO’s practice confirms: if the product targets a broad on‑ramp in EUR, a combination of an EMI in the EU + VASP registration and PSD2 integration for crypto payments provides flexibility, but requires a mature AML function. Timeframes: from 6 to 12 months for the full stack, including policy audits and beneficial owner checks.
Enhanced requirements for VASP in Estonia
Estonia has retained its status as a mature jurisdiction for VASP, but after reforms requirements have increased: capital, real presence, a qualified MLRO and detailed KYT procedures. The COREDO team implemented a project in Tallinn with on‑ramp/off‑ramp, where we aligned local AML policies with a Travel Rule router and an external sanctions screening provider. The result – seamless checks for both fiat and on‑chain routes.
Czech Republic and Slovakia: base and payments
The Czech Republic and Slovakia are convenient for corporate structure, back offices and hiring compliance teams. For “heavy” payment licenses these jurisdictions are not the first line, but they integrate well with an operational center in the EU and connection to local PSPs. Our experience at COREDO has shown that such a configuration speeds up Opening bank accounts and reduces administrative burden.
FCA: UK crypto registration
The UK requires crypto providers to register with the FCA, and for fiat — EMI/PI licenses. The regulator takes a strict approach to source-of-funds controls, governance and reporting. One COREDO client moved the custody function to a regulated custodian in the UK while keeping the non‑custodial logic of user wallets in the app: such a hybrid reduced regulatory burden and preserved UX.
PSA (MPI/SPI) and Singapore AML supervision
MAS is building a strict and predictable system under the PSA (Payment Services Act). For on‑ramp with cards and bank payments, the choice between Standard Payment Institution and Major Payment Institution affects limits and capital requirements. We helped a startup in Singapore implement a fiat‑collateralized stablecoin as an internal settlement layer for instant settlement inside the app – MAS accepted the model provided there was clear segregation of client funds and market risk.
VARA and DIFC/ADGM in Dubai
Dubai is shaping clear rules via VARA for VASP and separate regimes in DIFC/ADGM. The COREDO team set up offboarding through local PSPs and integrations with international exchanges under Travel Rule control and transaction reporting. The regulator requires real risk‑scoring systems and incident management procedures: we integrated monitoring and alerting (Prometheus, Grafana) and documented an SLA 99.9% with an escalation plan.
Architecture of a crypto-fiat gateway
I recommend viewing the architecture as a set of domains: payment rails (fiat rails), crypto operations, AML/anti-fraud, liquidity, accounting and reporting, security and data privacy. At the interface level, gateway APIs for crypto-fiat operations are critical, supporting REST/Webhook/WS, webhook retry logic, idempotency and API rate limiting and throttling.
For custody, choice matters: a custodial wallet with multisig and cold storage under key management or a non-custodial wallet where the user controls the keys. Custody affects Licensing and operational risks. I often recommend a hybrid: a hot wallet for on-ramp instant issuance, cold storage with multi-level approval, hardware wallet for offline keys and a clear settlement finality policy.
The back office maintains reconciliation ledger mapping, automated reconciliation with each provider, CI/CD and test environments, as well as SRE and fault tolerance. Throughput (TPS) and latency SLA 99.9% are recorded in agreements with providers and backed by alerting. For development, regulatory sandbox pilots and testnet vs mainnet deployment strategies are useful.
Integration of SEPA, SWIFT, ACH and cards
Step-by-step integration of SWIFT/SEPA/ACH into a crypto gateway starts with choosing a PSP/EMI and an open banking API. SEPA Instant speeds up EUR settlements, SWIFT gpi improves tracking of international transfers, ACH covers the US. For cards: acquiring with 3-D Secure, PCI DSS compliance, issuer processor and, if necessary, BIN sponsorship.
In COREDO projects we combine PSD2 AISP/PISP to reduce settlement costs and increase authorization. Reliable fiat on a crypto gateway is built on transaction routing: if a card is declined, offer SEPA or open banking; if ACH is slow, provide an instant on-ramp using PSP credit under risk limits.
Liquidity and market infrastructure
Liquidity providers for gateways, OTC desks and market makers provide access to tight spreads. Currency risk management and hedging for crypto-fiat transactions reduce margin volatility: use FX spread control, forward contracts, and for intra-system transfers, use stablecoins as internal fiat for instant liquidity.
Cross-chain bridges and atomic swaps are complex mechanisms that require smart contract audits and a risk acceptance policy. In most on-ramp cases, liquidity on major exchanges and pools, agreed settlement and counterparty limits with daily reconciliation are sufficient.
Anti-fraud and real-time AML
AML checks for onramp/offramp are built on three layers: KYC/CDD, behavioral scoring and KYT. Implementing KYT (Know Your Transaction) in real time includes rules on amount, geography, source of funds, blockchain address risk metrics and sanctions lists. monitoring tools for risk and transaction scoring for the business should provide interpretable reasons for rejection and feedback to the product.
Integrating third-party KYC/AML providers (Trulioo, Jumio, Onfido) and analytics (Chainalysis) reduces time-to-market. It’s important to build the UX flow: KYC layers without unnecessary loops, adaptive document verification and false positive management. COREDO’s practice has confirmed that fine-tuning thresholds and manual review increases on-ramp conversion by 5–12% without increasing risk.
Integration of UX into product development
Integration of fiat payments into a crypto app begins with mapping the user journey. Best practices for UX for fiat on‑ramp, early notification of KYC steps, visibility of the final fee and spread, choice of payment method and a transparent ETA for crediting. In the background — idempotency for payments and webhooks, a retry mechanism and handling of status collisions.
White‑label gateway solutions speed up launch, but require agreements on Data Privacy and GDPR, data residency and localization. SaaS vs on‑prem gateway is not only about cost, but also about control over transactions and anti‑fraud logic. Integration checklist for CTO includes: PCI DSS, 3‑D Secure, webhook retry, SLA, failover, logging, risk bucketing and security audit.
How to connect a crypto-fiat gateway
How to connect a crypto‑fiat gateway in a mobile app is a common question. I recommend provider SDK/JS bridges, card tokenization, strict key isolation, and biometrics on critical steps (withdrawal/changing details). The API interface for fiat and cryptocurrency exchange (REST/Webhook/WS) should support statuses, idempotent keys, webhook signatures and a time‑based nonce.
The UX flow accounts for 3‑D Secure, fallback to open banking and pre-filling of details for SEPA. For KYT the logic shows the user the reason for a delay and requests documents specifically, avoiding frustration. This approach supports the conversion rate without neglecting AML.
Project economics: ROI
The cost of integrating fiat gateways and calculating ROI rely on two axes: fixed costs (licenses, audits, development, PCI DSS/infrastructure) and variable costs (interchange fees, acquiring, network, KYC/KYT providers, blockchain fees, liquidity providers). How to assess ROI from integrating a crypto‑fiat gateway? Model the unit economics fiat‑fiat‑crypto for each payment rail taking into account cancellations, chargebacks, AML rejections and the FX spread.
What key metrics (CAC, LTV, conversion) affect on‑ramp profitability? I focus on the funnel: visit → KYC start → KYC pass → successful payment → retention at 30/90 days → repeat transactions. The revenue model combines fees, spread, interchange and FX margin; regulatory caps on fees in certain countries are best accounted for in advance.
Chargeback risk management and handling dispute management in fiat‑crypto exchanges require clear documentation, transparent terms, 3‑D Secure logs and instant responses to bank requests. How to organize automated matching and reconciliation? Use a sub‑ledger, pending statuses, counterparty mapping and daily reports. This eliminates “leakage” and reduces manual work.
How to operate and scale?
Scaling the gateway: load, TPS and SLA, a matter of SRE culture. Horizontal scaling, health checks, circuit breaker for external APIs, queues for heavy jobs and realistic load testing before release: the minimal set. Monitoring and alerting (Prometheus, Grafana) and latency SLOs on critical endpoints maintain quality.
Plan B in case of sanctions/license revocation and scenarios of liquidity collapse include alternative PSPs/EMIs, backup exchanges, emergency limits, a playbook for counterparty failure and a client communication procedure. The COREDO team helped a client in the EU survive the sudden stoppage of one PSP: within 48 hours we switched the on-ramp to a backup provider, preserving the SLA and cash-out via SEPA.
Taxes and compliance in the EU and Asia
Taxation of crypto-fiat transactions in the EU/Asia depends on the jurisdiction, the status of the tokens, and the place where services are provided. Most often, income from fees and spreads is subject to corporate tax, while VAT requires analysis of specific operations. Taxation of cross-border transactions and profit repatriation is a separate area of tax planning that I raise at the start of a project.
Data privacy and the GDPR dictate the storage and processing of personal data, including KYC dossiers, transaction logs, and biometric templates. Data residency and localization in certain countries require segmenting infrastructure and encryption keys. Encryption and key management are part of the security architecture, with key rotation, HSMs, and access auditing.
COREDO: Case studies from practice
- EU, crypto‑application with SEPA on‑ramp. The COREDO team implemented PSD2‑integration and SEPA Instant, integrated Trulioo and Chainalysis, established KYT‑rules and automatic reconciliation. Onboarding conversion increased by 9%, time to first deposit decreased from two days to a few minutes.
- Singapore, licensing under PSA and stablecoin‑settlement. The client obtained MPI status, built a fiat on‑ramp through cards and local banking rails. Internal settlement ran through fiat‑collateralized stablecoin, which reduced operational liquidity gaps and allowed maintaining a 99.9% SLA on withdrawals.
- Dubai, VARA and Travel Rule compatibility. We connected Travel Rule providers, configured sanctions screening and behavioral anti‑fraud. Local PSPs integrated with international exchanges via the gateway API for crypto‑fiat operations; a contingency plan for counterparty failure was embedded in operational procedures.
- United Kingdom, hybrid custody‑model. The client moved from full custodial storage to a model delegating to a custodian and non‑custodial user wallets. This eased FCA requirements while preserving the convenience of fiat off‑ramp.
90–180-day launch roadmap
- Weeks 1–4: strategic design. Jurisdictions, corporate structure, selection of PSP/EMI/exchanges, custody and liquidity model, on-ramp/off-ramp strategy. AML/KYC/KYT policies, Travel Rule frameworks, DPIA for GDPR.
- Weeks 5–10: licensing and contracts. Submitting applications (VASP/EMI/PI where required), KYC providers (Jumio/Onfido/Trulioo), Chainalysis, acquiring and BIN sponsorship if necessary. Development of open banking API.
- Weeks 8–14: development and integrations. Gateway API, webhooks, idempotency, PCI DSS controls, 3‑D Secure, reconciliation ledger mapping, monitoring and alerting, CI/CD and test environments.
- Weeks 12–18: pilot and launch. Regulatory sandbox pilot, load testing, AML playbooks, back-office training, production launch, SRE on-call and post-mortems for incidents.
Frequently asked questions for executives
- How to ensure MiCA compliance and AMLD when launching an on‑ramp? Assign MLRO roles, a KYT‑engine with interpretable rules, sanctions screening, Travel Rule integration and a review/escalation process.
- How much time and budget are required for integration and obtaining licenses? For a “minimum viable” configuration in one jurisdiction allow 3–6 months and budget for development, licensing, KYC/KYT and PCI DSS. Full EMI+VASP stack – from 6 to 12 months.
- how to choose the model custody – hold funds or delegate to a provider? Compare regulator requirements, risk appetite, internal competencies and UX. A hybrid is often optimal.
- How to scale the gateway as transactions grow and maintain SLAs? Implement SRE‑processes, horizontal scaling, alerting, API rate limiting and backup providers.
- What liquidity drop scenarios and action plan if a counterparty fails? Contracts with alternative PSPs/exchanges, counterparty limits, rapid rerouting of volumes and a pre-written playbook.
- How to integrate anti-fraud and AML without reducing on‑ramp conversion? Use staged KYC, adaptive checks, behavioral scoring, false positive management and clear UX prompts.
- Is it worth using a stablecoin inside the app to speed up settlement? For internal settlements this often simplifies liquidity and reduces operational delays: provided proper accounting and legal review.
- How to build a revenue model: fees, spread, interchange and FX margin? Test pricing on different rails, account for network and processing fees, optimize margin via liquidity providers and routing.
How COREDO helps
COREDO covers the entire cycle: company registration in the EU, the United Kingdom, the Czech Republic, Slovakia, Cyprus and Estonia; licensing in the EU, Singapore and Dubai; AML/KYC/KYT setup; selection and contracts with PSPs/EMIs, liquidity providers and custodians. The COREDO team develops policies and operational playbooks, builds Travel Rule contours, assists with PCI DSS and 3‑D Secure integrations, and also supports bank account openings and BIN sponsorship.
Our experience at COREDO has shown that a strong project is a combination of legal perspective, operational discipline and products with clear economics. I personally participate in strategic sessions where we prioritize, manage risks and create a roadmap with realistic timelines and KPIs.
Conclusions
A crypto‑fiat gateway is not a “payments plugin”, but a platform where regulation, liquidity, anti‑fraud and user experience converge. If you neglect any one of the layers, the market will quickly punish you: fraud, blocks, conversion failures, or liquidity breaks. If you build the architecture systematically — from licensing and AML to reconciliation and SRE — the on‑ramp/off‑ramp becomes a stable and predictable source of revenue.
COREDO has been designing such solutions since 2016 for the EU, Asian and CIS markets. When an entrepreneur receives a roadmap from us, they don’t get a set of pretty words but a proven path: what to do in which sequence, which metrics to control and how to take managed risks. If you are preparing to launch or scale a crypto‑fiat gateway, let’s discuss your target markets, licenses and economics — and assemble a solution that will withstand growth and regulatory scrutiny.