The Australian founders of CoinJar announced today that their personal accounts have been frozen by Commonwealth Bank of Australia, with no warning, after claiming that their personal accounts are associated with CoinJar’s business account. CBA has reportedly also blacklisted Bitstamp, the second most active Bitcoin currency exchange.
Coupled with recent moves from the US Government, the sporadic shutdown of Bitcoin services, and suspicion from many other banks over Bitcoin transactions, users must be eagerly awaiting the launch of the world’s first crypto bank: Crypto Finance.
The World’s First Crypto Bank
Crypto Finance is planning to launch in Q4 this year, and will be based in Panama. The company will offer personal and business bank accounts for individuals converting up to 20 different Fiat currencies, and an exchange for purchasing crypto currency with Fiat currency.
Transactions will be faster, fees lower, and “100% of the funds will remain intact in the customer’s account” i.e. Crypto Finance will not over leverage themselves in the way that traditional banks have. The bank will also offer Visa Debit Cards for ATM use (although no further information is given about existing agreements with the cards provider).
The process for opening an account will be made smoother by Crypto Finances licence of the Unique Identity Technology suite, which will provide historical identity data on potential customers, such as previous addresses, anti-fraud data, and verification machine readable zone on common Identity Cards.
The bank will offer incentives to traditional banks to work with them, will offer crypto exchanges the opportunity to partner with them to take on the burden of compliance and identity confirmation work, and will offer merchants the chance to convert BTC transactions back into Fiat currency automatically.
Investment in Crypto Finance
The crypto bank is offering 20% of its shares in an IPO, at the BTC equivalent of $15 per share for the 200,000 units. Further, the bank will offer dividends on a quarterly basis to investors of “all net income derived from the exchange of Fiat currency to crypto currency and visa-versa”.
Crypto Finance will certainly face many challenges – regulation, government barriers, willingness of traditional organizations to work with crypto currencies. It is not yet known if they have been granted a banking licence, though by choosing Panama as their location, the chances are greatly increased.
This is the first of what hopefully will be many evolutions to the crypto currency banking process.
We’re wishing them the best of luck!
Thanks for reading,