Interview: Bitpace discusses zero-volatility solutions for coping with regulatory changes in the crypto industry

Bitpace was founded in 2016 and has set itself the goal of making cryptocurrency payments more complex and making them accessible to everyone. Bitpace offers companies and consumers the opportunity to accept, send and save digital payments and help companies safely to understand the cryptol landscape when introducing crypto solutions.

In this interview, Rebecca Campbell, editor for crypto content at Coinjournal, with Meryem Habibi, Chief Revenue Officer from Bitpace, spoke to discuss regulatory changes in the crrypto area. Habibi deals with the challenges with which companies are confronted with after the introduction of markets in Crypto Assets (Mica) Ordinance, how zero-volatility solutions can help, whether strict regulations will slow down or promote the growth of cryptocurrencies and what important steps to prepare should change in the regulatory landscape.

Rebecca Campbell (rc) : What are the greatest challenges for companies when adapting to these framework conditions?

Meryem Habibi (mh): The biggest challenge is to manage the complexity of the compliance requirements of the supervisory and governance standards set out in Mica. These framework conditions require significant operational adjustments, including improved recording, separation of assets and compliance with strict governance protocols such as the Senior Manager and Certification Regime (SMCR). For many companies, the lack of regulatory clarity in combination with the need to revise internal systems leads to a double time and resource printing.

rc : How do zero-volatility solutions help to cope with stricter regulations and at the same time maintain their growth?

mh : null volatility solutions such as stable coins or cryptocurrencies bound to Fiat reduce the risk of price fluctuations, which is an important requirement in the context of new regulatory standards. By offering a predictable value, they help companies to meet obligations such as custody requirements and assets and at the same time maintain transaction efficiency. These solutions also create trust in both consumers and regulatory authorities, reduce the risk and at the same time ensure that companies can concentrate on scaling without being hindered by market instability.

rc : What advice would you give companies who have difficulty adapting to these new regulatory requirements without compromising in operational efficiency?

mh : proactively invest in a reliable crypto infrastructure where compliance by design is in the foreground. Work with FinTech companies that offer tailor-made solutions for regulatory alignment, such as automated reporting, secure custody and risk management tools. In addition, by investigating internal teams, companies are able to deal with the developing landscape and the prioritization of scalable systems to manage future changes more effectively.

rc : Can you explain the role of a reliable infrastructure in ensuring compliance and minimizing the risks associated with the crypto introduction?

mh: A reliable infrastructure is the backbone for compliance and operational integrity. It enables real -time monitoring, secure data processing and robust records - essential for compliance with legal standards. In addition, such an infrastructure enables companies to integrate financial criminal systems, to automate comparisons and to provide verifiable records, which significantly reduces the risks in connection with non -compliance and operating errors.

rc : How does the Bitpace infrastructure specifically deal with regulatory and operational challenges for companies in the crypto sector?

mh : The focus is on compliance and user-friendliness when developing the Bitpace platform. Our tools enable complex processes such as safe storage, transparent reporting and transaction tracking and enable companies to seamlessly meet developing standards. Our global range and our local understanding of the regulations give companies the scalability and adaptability that they need for smooth operation across different jurisdiction.

rc : Which strategies would you recommend to ensure smooth payment processes and at the same time to comply with regulatory obligations?

mh : Prioritize an infrastructure that supports automation, from transaction processing to compliance reporting. Use scalable solutions such as multi-currency wallets, integrated "know-your-customer"-/anti-money laundering (KYC)/(AML) tools and intelligent contract framework to ensure that payment systems are not only efficient, but also meet regulatory expectations. A strong focus on operational resistance and financial criminal systems is also of essential importance.

rc : Do you see that the global crypto introduction is significantly slowed down by stricter regulations, or could these regulations create new opportunities for companies?

mh : While stricter regulations can slow the introduction at first, they ultimately offer a framework for trust and legitimacy and enable broader acceptance and institutional investments. Companies that accept these changes at an early stage can position themselves as the market leader in a structured and safer market. This change opens up new possibilities, especially for those who use conforming infrastructures and innovative products.

rc : Which industries will in your opinion benefit most of it to use crypto as a strategic advantage in the current financial landscape?

mh : industries with a high border crossing transaction volume such as e-commerce, transfer and supply chain logistics will increase significantly. These sectors can use crypto for faster and cheaper payments and at the same time use blockchain for transparency and security.

rc : What important steps should companies take today to prepare for upcoming changes in the regulatory landscape?

mh : companies should carry out a thorough gap analysis in order to identify compliance weak spots and to remedy them immediately. The early collaboration with the regulatory authorities, the investment in scalable cryptol solutions and the promotion of partnerships with fintech providers are crucial steps. The structure of flexible systems that can adapt to future requirements, as shown in the mica road maps, will ensure long-term profitability.

rc : Are there any frequent mistakes that make companies make when they try to adapt to new crypto regulations?

mh : A frequent mistake is to underestimate the complexity of compliance, which leads to fragmented solutions that do not manage systemic challenges. Another focuses exclusively on direct regulatory requirements without taking into account the scalability for future requirements. Finally, some companies overlook the importance of customer education and communication, which is of crucial importance for maintaining trust in a heavily regulated environment.

rc : Can you give an example of a company that has successfully used zero-volatility solutions to master regulatory challenges and achieve growth at the same time?

mh : Bitpace encounters the volatility of cryptocurrencies by automatically converting cryptocurrency payments into stable currencies such as EUR, USD, USDT and USDC. This enables companies to accept crypto without price fluctuation risks. With the support of over 70 cryptocurrencies and integration with several liquidity providers, Bitpace ensures efficient, inexpensive and reliable transactions.

Bitpace has made it possible for many companies to rationalize cross-border transactions and maximize their profits by providing a time and cost-efficient solution without exposing themselves more volatile cryptocurrencies such as Bitcoin.

The Bitpace platform adheres to global regulatory standards, including the guidelines of the Financial Action Task Force (FATF) and the Travel Rule, and at the same time agrees with the EU MICA regulation. These compliance measures were accompanied by remarkable growth, with Bitpace reporting an increase in transaction volume by 480 % compared to the previous year since October 2023. This growth reflects the increasing acceptance and growing trust in cryptocurrency payments in areas such as transfers, foreign exchange and travel, hospitality and e-commerce.