Although cryptocurrencies are earning on theirpopularityand theiruse-cases are getting widerlike NFTs artist,NFT marketplaces, DeFi,Blockchain games, crypto exchanges, etc… In the last year, we have seen a massive growth of the whole market. Despite the mass adoption, we must see a collaboration between traditional financial institutions and cryptocurrency businesses to continue with the growth.
Banks’ current reflection is that their inherent risks overshadow their potential benefits. Banks are believing that transactions with cryptocurrencies are presenting a high-risk industry and requires in-depth due diligence, but cryptocurrencies may offer comprehensive benefits to financial institutions, customer, and the banking sector.
The key challenge that we noticed with companies, like NFTs artists, NFT marketplaces, DeFi, Blockchain games, crypto exchanges, that operate in the virtual currency area face, is getting and maintaining a bank account so they can pay their employees, suppliers and serve customers.
Why Banks are worried about Cryptocurrencies?
The traditional banking institutions are slow to adjust tonew regulations and regulatory frameworks. If you as a business owner of the crypto company goes to the bank requesting opening a bank account, once you mention that you are operating in “that bitcoin stuff” 95% of banks will not permit you to open a bank account, or worse- they will open a bank account for you and after some period they will shut it down and give you 14 day to withdraw the capital. It is no wonder that banks are acting like that since there are no yet clear regulations in all countries of Europe. (not earlier than in 2 years there will be:MiCa). Additional reasons:
Decentralized Character
Crypto assets weredesigned as an alternative to traditional bankinginfrastructure that doesn’t need an intermediary and isn’t tethered to the capacity of a centralized government, bank. Instead of depending on centralized intermediaries in these transactions, the trust is seated in the blockchain code and the distributed nature of the blockchain.
The decentralized natureof the currency is seen to undermine the power of central banks, leaving some to believe that they won’t be needed anymore, or they’ll be unable to control the money supply.
AML/KYC Concerns
Many banks are concerned about the lack of anti-money laundering (AML) and know your customer (KYC) regulations surrounding digital currency transactions. Frequently, banks are under the impression that cryptocurrency transactions can’t be tracked for AML and KYC considerations, which could lead to illegal activity and scams on the network.
Volatility
The price of cryptocurrencies has generally beenvolatileover their short life. Banks see this as a risk because historically, the price hasn’t been stable, so they believe the currency might not remain a stable investment vehicle over time.
Destroy all the barriers and become independent!
Photo byJason HoganonUnsplash
The obstacles and problems described above were the motivation to establishSwipelux. We are a bridge between the traditional financial world and the crypto world. We are bridging these two worlds by integrating apayment widgetthat allows end-users to buy Fungible tokens (like BTC, ETH, etc.) or Non-Fungible tokens with a payment card.
Recommended next reads
We can help companies like NFT marketplaces, DeFi, Blockchain games, crypto exchanges, crypto wallet providers,… with the onboarding of fiat retail users to your platform.We as a Swipelux are handling:
KYC/AML
We take care of all the legal requirements relating toAML/KYC. If there are any issues with payment/KYC/KYT — Swipelux will detect them and solve the problem. We are handling the chargeback and providing a secure environment for our partners and their clients.
Liquidity providing
We are sourcing theliquidityfrom many CEX and DEX. We have taken a full transparency approach with No-Markups.
Credit card processing
We areprocessing the payment cardsso we can make the process of onboarding customers from the fiat world to the crypto world in the most convenient way
White-Label approach
We understand the UX/UI is the key point of every business so for that reason we can fully customize the widget flow.
Become independent!
Cut yourself off from Different crypto exchanges, wallets and increase the time spent of your users on your platform with the Swiepux widget and forget about any crypto-friendly banks.
Let’s build an amazing future together!
Filip Kollert- f@swipelux.com
Co-founder ofSwipelux
Follow us on socials:
