Crypto compliance is difficult and expensive to build from scratch. Partnering with a licensed infrastructure provider like Coinme can reduce both costs and compliance exposure.
Businesses that want to add crypto capabilities, including digital wallet options, payment apps, or financial platforms, can run into an immediate regulatory wall. In the U.S., the regulatory environment in this sector is state-specific, making it difficult and costly to navigate.
“It’s in our — and our customers’ and partners’ — best interest to be a regulated and licensed entity wherever possible,” said Neil Bergquist, co-founder and CEO of Coinme.
For companies without an existing compliance foundation, the more practical path isn’t building infrastructure from the ground up but integrating with a provider that’s already done the work. Partnering with an established, licensed cryptocurrency infrastructure provider like Coinme gives businesses a way to offer crypto-related services while managing costs and compliance exposure.
Common Compliance Challenges When Entering Crypto
Many companies underestimate the number of obligations they must meet before launching crypto. Challenges tend to fall into recurring categories, such as:
State-by-state money transmitter licensing. A majority of states require its own license, with separate application fees, surety bond requirements, and review timelines that can range from a few months to more than a year.
Building KYC and AML infrastructure from scratch. Know-Your-Customer (KYC) and Anti-Money Laundering (AML) programs require ongoing investment in identity verification, sanctions screening, and transaction monitoring.
Meeting evolving federal and state requirements. Regulatory expectations shift as new frameworks, such as recent federal stablecoin legislation, take effect. Compliance is more than a one-time build.
Passing scrutiny that extends to vendors. Regulators can examine a company’s third-party vendors directly when a partnership poses a material risk, so a business’s compliance exposure isn’t limited to its own operations.
Coinme’s Existing Licensed Infrastructure Helps Mitigate Compliance Exposure
Coinme has already built the licensing, technology, and compliance operations most companies would need to support crypto. It’s a Crypto-as-a-Service (CaaS) platform registered as a Money Services Business with FinCEN. Coinme operates in 48 states and holds money transmission licenses where required, including in 34 states along with Washington, D.C., and Puerto Rico. Its licensing status can be verified through the Nationwide Multistate Licensing System (NMLS number 1185542). That gives partners a way to offer crypto-related services through an infrastructure layer that already meets state and federal requirements.
Partners Enter With an Existing Compliance Infrastructure
Industry estimates put the typical timeline for building a nascent regulated financial infrastructure at two to five years. That’s compared to two to six months when you integrate an API from an established partner.
In-house development means securing money transmitter licenses across dozens of states individually, each with its own fees, bond requirements, and review timelines. You also have to build the KYC, AML, and transaction monitoring systems needed to operate legally.
The operational burden doesn’t end at launch. Compliance functions are workforce-intensive to run: McKinsey research found that banks commonly dedicate 10 to 15% of their workforce just to KYC/AML, for example.
Partnering with an established provider like Coinme lowers the barriers to entry. Compare the general requirements for getting started in the table below.
Partners Get the Benefit of Experienced Regulatory Operations
Research tracking cryptocurrency exchanges since 2014 has found that many failed, whether through insolvency, security breaches, or regulatory shutdowns. Against that backdrop, a provider’s operating history in the industry speaks to its ability to withstand market cycles and regulatory change.
Coinme has operated since 2014, making it one of the longer-standing companies in the crypto cash onramp and off-ramp space. Over that time, the company has grown into what it describes as the largest cash onramp network in the nation, with more than 40,000 total access points nationwide, over a billion dollars in transactions, and more than a million users.
That scale comes with recognition beyond the company’s own reporting:
Ranked №1 in Washington State on Deloitte’s Technology Fast 500 in 2021
Named to the Inc. 5000 list of America’s fastest-growing private companies in 2022, ranking 227th nationally
Recognized by the Financial Times as one of America’s fastest-growing companies
Certified by Great Place To Work, with 88% of employees rating it favorably, above the national average
Its operating history has also built out mature reporting and oversight processes that meet ongoing state and federal expectations.
That experience can be invaluable for partners, as regulatory challenges can make or break operations in the sector. Niranjan Sapkota, assistant professor at the University of Vaasa and co-author of the study regarding failed exchanges, said, “Exchanges that allow U.S. customers to trade experience higher probability of default.” Researchers theorize that the regulatory scrutiny designed to protect consumers may create operational challenges that reduce long-term success rates in the industry, especially for inexperienced or growing operations.
Partners Know Their Vendor Will Pass Scrutiny
Regulators increasingly hold institutions accountable for the vendors they rely on in addition to internal operations. In July 2025, the Federal Reserve, OCC, and FDIC issued joint guidance stating that using a sub-custodian or third-party vendor for crypto-asset activities doesn’t absolve a banking organization of responsibility for effective risk management. That principle extends beyond banks: FINRA’s 2026 regulatory oversight report identifies vendor management as a recurring examination focus and treats vendor oversight as part of a firm’s compliance responsibilities.
Common triggers for vendor-related enforcement include:
Inadequate vendor vetting before onboarding and having that vendor later fail a core compliance obligation
Data security failures that originate with a vendor
Misleading marketing or disclosure practices carried out by a third party on the partner’s behalf
Working with a provider like Coinme — which is active across 48 states, holds money transmission licenses where required, and operates established KYC, AML, and on-chain monitoring infrastructure — gives partners a strong starting point for that due diligence. It doesn’t eliminate the need for a partner to evaluate its vendor, since that obligation stays with the partner regardless of who they work with, but the vendor evaluation starts from an operating compliance program.
Managing Compliance Exposure in Crypto Starts With the Right Infrastructure
And you don’t have to build it ex novo. Partnering with an established, licensed provider like Coinme can provide an existing foundation that helps accelerate time to market and improve compliance for businesses that want to add crypto services.
Published Origianlly on — https://coincodex.com/article/91633/what-licensed-crypto-infrastructure-like-coinmes-means-for-a-partners-compliance-exposure/
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