How do crypto on-ramps and off-ramps work?
An on-ramp swaps ordinary money for crypto and an off-ramp swaps it back; the FATF, the global anti-money-laundering standard setter, treats this exchange as a regulated service.1 The money reaches the exchange over bank rails such as wires, ACH, SEPA or cards, after the exchange has checked who you are.2,1
What an on-ramp is
An on-ramp is a service that takes ordinary money, such as dollars or euros, and gives you crypto. An off-ramp does the reverse. The Financial Action Task Force (FATF) sets the global standards against money laundering.1 Its list of virtual asset service providers (VASPs) includes any business that, for customers, exchanges virtual assets for "fiat currencies": ordinary money such as dollars and euros.1
Since October 2018, the FATF's standards have covered virtual assets and VASPs.3 In the US, FinCEN, the Treasury's financial crimes unit, calls a business that swaps virtual currency for real currency an "exchanger".4 Its 2019 guidance says exchangers generally count as money transmitters, which must register with FinCEN as money services businesses and run anti-money-laundering programs.4
The rails money travels on
Money reaches an exchange from your bank over a payment system, often called a rail. Kraken, a large exchange, says bank transfer is the most common way to deposit.2 These are the main rails.5,6,7
| Rail | What it is | Timing |
|---|---|---|
| Wire (Fedwire in the US) | Large payments between banks, final and irreversible once processed5 | Monday to Friday except holidays, from 9 p.m. the evening before to 7 p.m. US Eastern time5 |
| ACH (US) | Batches of electronic payments sent between banks, used for payroll6 | Silvergate said ACH payments can take several hours to several days8 |
| FedNow (US) | Instant payments through bank accounts, live since July 20239 | 24 hours a day, every day, including holidays9 |
| SEPA (Europe) | Euro payments across 41 European countries, just like a domestic payment7 | SEPA instant transfers arrive within ten seconds7 |
| Card | A debit or credit card purchase, where the exchange accepts cards2 | Kraken says card purchases trigger a 72-hour hold on withdrawals2 |
The exchange's own rules
Each exchange sets its own deposit methods, fees, limits and holds.2 As one example, Kraken's help page, read on 22 October 2026, says:2
- The most common way to deposit is a bank transfer.2
- Card, PayPal and some ACH purchases trigger a temporary 72-hour hold on withdrawals; ACH deposits made through Plaid are held for 7 days.2
- Deposit limits depend on how far you have been verified.2
- Kraken's own deposit fee doesn't include what your bank charges to send the money.2
- Banks in between, called intermediary or correspondent banks, may also charge fees or convert the money into another currency on the way.2
Kraken adds that this information can change without notice.2 Naming one exchange here is not a recommendation.
Who are you? Checks come first
Before an exchange or a bank takes your money, it checks who you are. The FATF calls this customer due diligence (CDD).1 Under its standard, a financial firm should:1
- Identify the customer, and check that identity using reliable, independent documents or data.1
- Identify the customer's beneficial owner: the person who really owns or controls it.1
- Understand the purpose and intended nature of the relationship.1
- Keep watching the account over time.1
For a VASP's one-off transactions, the FATF sets the amount above which these checks must be done at USD/EUR 1,000.1
Off-ramps: the same road backwards
To cash out, you sell crypto for ordinary money on the exchange, then withdraw that money to your bank.1,2 Some bank rails don't run every day. Fedwire's business days are Monday to Friday, so a wire can't settle over Fedwire on a Saturday.5
Percentage fee, then flat fees. Cash received = amount × (100% − fee %) − each flat fee. Sell 100,000 USDC at $1.00 with a 0.10% fee: 100,000 × 99.9% = $99,900. Then take off any wire fees.
Currency conversion. Dollars received = euros × the dollars-per-euro rate you are given − any flat fee. Banks along the way may charge fees or convert currency, as Kraken notes.2 The quizzes use these methods, with made-up fees.
- International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation: The FATF Recommendations. Financial Action Task Force (FATF), updated June 2026, 2012-2026.
- Cash deposit options (fees, minimums and processing times). Kraken support centre, last updated 20 October 2026, read 22 October 2026.
- Virtual Assets: Targeted Update on Implementation of the FATF Standards on Virtual Assets and Virtual Asset Service Providers. Financial Action Task Force (FATF), July 2026.
- Application of FinCEN's Regulations to Certain Business Models Involving Convertible Virtual Currencies (FIN-2019-G001). Financial Crimes Enforcement Network (FinCEN), US Department of the Treasury, 9 May 2019.
- Fedwire Funds Services. Board of Governors of the Federal Reserve System, read 22 October 2026.
- FedACH Services. Board of Governors of the Federal Reserve System, read 22 October 2026.
- Single Euro Payments Area (SEPA). European Central Bank, read 22 October 2026.
- Silvergate Capital Corporation annual report (Form 10-K) for 2021. Silvergate Capital Corporation, filed with the US Securities and Exchange Commission, 28 February 2022.
- FedNow Service. Board of Governors of the Federal Reserve System, read 22 October 2026.
General education built from the publicly available sources listed above. Not financial, legal, tax or investment advice. Naming a company, project or regulator is not an endorsement either way. Last checked 2026-10-22. Terms and disclaimer.