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Insights and Expertise

future receivables for $20,000. The cash advance pro- in soliciting, underwriting and supporting merchants
vider would pay a purchase price of $20,000 and then, is in a position to add substantial value to a crypto
over time, as and when the merchant receives its receiv- payment processing provider that might not have the
ables, the $25,000 purchased is paid to the cash advance boots-on-the-ground experience of a regular fiat pro-
provider. When done correctly, a cash advance is not a cessing ISO.
loan.
Crypto payment processors have been so busy getting
There are a number of crypto businesses that might all their licenses and compliance policies in place, they
benefit from cash advances, including liquidity pro- often forget to engage with actual salespeople who
viders, exchanges, crypto ATM operators and others. know how to solicit merchants in the real world. This is
There are some regulatory complexities associated where ISOs can add a lot of value.
with a cash advance to a crypto business, but they are
not insurmountable. Crypto is here to stay

Many crypto businesses are loath to take on the risk With President-elect Trump promising to put Bitcoin on
associated with fluctuating crypto prices. Still, they are the balance sheet of the country, it looks like crypto is here
deemed high risk and have a hard time finding capital. to stay and likely to become a more common feature in the
payments landscape. Being mindful of the many scams
4. Merchant sales and underwriting and compliance pitfalls, there are plenty of legal ways to
turn a profit in crypto without ever owning any—if that is
A crypto payment processor is a payment proces- your preference.
sor that helps a merchant take payment in crypto but
receive settlement in fiat (or the other way around). In publishing The Green Sheet, neither the author nor the publisher are
Crypto payment processors, like liquidity providers, engaged in rendering legal, accounting, or other professional services.
are highly regulated under both federal and state law. If legal advice or other expert assistance is required, the services of a
competent professional should be sought. For further information on
One skill that does not come with all of those licenses this article, please contact Adam Atlas, Attorney at Law email: atlas@
is merchant underwriting. An ISO that is experienced adamatlas.com, Tel. 514-842-0886.

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