Crypto-to-fiat Exchange

In 2026, there are many ways to buy or sell cryptocurrency. The two most common options are P2P platforms and licensed crypto exchange services. At first glance, the difference may seem minor — just a matter of format. In reality, the structure of the transaction determines whether you may face bank scrutiny, account freezes, or difficulties proving the origin of funds.
Let’s break down how a regulated exchange differs from P2P trading and why this distinction matters, especially when operating in Georgia.

P2P (peer-to-peer) trading allows users to exchange cryptocurrency directly with one another. The platform typically acts as an escrow service, holding the crypto until payment is confirmed. However, the actual counterparty in the transaction is another private individual.

The process is simple:
●     You find a seller or buyer.
●     You transfer money to their bank card or account.
●     Once payment is confirmed, the crypto is released.

P2P trading became popular because it is accessible and sometimes offers better exchange rates. Registration is usually quick, and no physical visit is required.

A regulated exchange service is a legal entity operating under a Virtual Asset Service Provider (VASP) license. In Georgia, such companies comply with financial regulations and AML/KYC requirements.

For clients, this means:
●     The counterparty is a licensed company, not a private individual.
●     Transactions are formally documented.
●     Funds are transferred by an officially registered business.

This legal status significantly influences how banks treat incoming or outgoing payments.

In P2P trading, funds are transferred between private individuals. From a bank’s perspective, this appears as a standard personal transfer with unclear economic purpose.
With a licensed exchange, the transfer comes from a regulated legal entity whose business activity is transparent and recognized.

One of the most common issues with P2P trading is account suspension. Payments often come from unrelated third parties. In some cases, the sender may use someone else’s card or funds that later become subject to investigation.
Even if the recipient is not involved in any wrongdoing, banks may temporarily freeze the account while reviewing the transaction.
When working with a licensed exchange, funds come from an identifiable and regulated counterparty. The legal basis of the transaction is clear, which reduces compliance-related concerns.

After a P2P transaction, users usually have only chat logs or screenshots as proof. In case of a bank inquiry, this documentation may not be sufficient.
A regulated exchange provides formal transaction confirmations, invoices, or agreements. These documents can be presented to banks, accountants, or tax authorities if required.

P2P trading involves dealing with unknown individuals. Although platforms offer dispute resolution, delays and temporary fund freezes are possible.
Licensed exchange services operate under structured procedures. Rates are agreed in advance, liquidity is prepared, and the transaction follows a defined compliance process.

While P2P platforms technically allow large trades, users often split transactions into multiple smaller transfers. For banks, such behavior may raise compliance concerns.
Licensed exchanges can structure large transactions properly, reserve liquidity in advance, and execute the deal in a single transparent operation without artificial splitting.

P2P trading may be suitable for:
●     Small, one-time transactions
●     Users who understand and accept the risks
●     Situations where formal documentation is not required

However, it remains a private transaction format, where responsibility for counterparty risk lies entirely with the participants.

A licensed exchange service becomes especially relevant when:
●     Selling a vehicle or real estate
●     Receiving regular payments
●     Converting crypto into bank transfers
●     Operating as a sole trader or company
●     Handling significant transaction volumes

In these cases, the priority shifts from minor rate differences to legal clarity and banking stability.

Before completing a transaction, verify:
●     The company holds a valid VASP license
●     It operates as a registered legal entity
●     It provides formal documentation for transactions
●     Exchange rates and terms are clearly fixed
●     The service can handle the required transaction volume

An established office presence and transparent KYC procedures are additional positive indicators.

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