While the crypto industry is still in its infancy, it has been rapidly evolving since its inception. Many issues were solved, and many milestones were broken. However, one problem that has a massive impact on the industry still remains. The crypto industry lacks proper banking.
With the meteoric rise and fall of various crypto exchanges and cryptocurrencies, the crypto industry experienced a big influx of money. Unfortunately, this attracts shady actors who enter the space to profit off of the insufficient banking situation. Many exchanges lack basic safeguards and leave consumers vulnerable to exploitation.
Further, since the crypto industry doesn’t really have access to the banking sector, there is not the same oversight that other industries have. This leaves consumers, businesses, and investors at the hands of whichever exchange or banking solution they use, and the past has shown how that can turn out.
For example, according to findings that emerged from an investigation into cryptocurrency exchanges led by the New York attorney general, in mid-2018, Bitfinex, the exchange behind Tether, used Tether reserves to cover up that $850 million in customer funds went missing. Unfortunately, events like this are not uncommon in the crypto industry.
Silver linings for the crypto industry
Fortunately, there are also many positive developments, and the trend is moving in the right direction. In September 2020, Kraken, one of the oldest cryptocurrency exchanges, formed the world’s first Special Purpose Depository Institution (SPDI), called Kraken Bank, after the state of Wyoming approved its application.
This not only made Kraken Bank the first digital asset company in U.S. history to receive a bank charter recognized under state and federal law, but it also made it the first regulated U.S. bank to provide deposit-taking, custody, and fiduciary services for digital assets.
Additionally, there are businesses like us that provide unique banking solutions for companies active in high-risk industries, such as the crypto industry. At Universal Crypto, we are aware that there is no one-size-fits-all solution, so we apply the expertise and knowledge we gathered in the forex and cryptocurrency industries to provide banking solutions tailored to our clients’ unique needs.
Solutions for banking-related issues in the crypto industry
We have identified solutions to many key problems, and, with the help of our team of experts and our partners, we can offer fitting solutions to our clients. By giving our clients’ peace of mind when it comes to their banking, we enable them to direct their focus on running and growing their business.
Since there are various banking-related issues, we offer many different solutions. For example, we have helped countless clients massively reduce their PSP fees, but we have also helped numerous clients get their own EMI license to become their own institution and drastically reduce their fees.
Additionally, since we onboard with a Canadian bank based on our clients’ cumulative monthly deposits, we can give our clients access to transaction fees between 0.5 and 2.5 percent, depending on what specific services are required. While these fees are usually only available to big companies, we are able to offer them to small startups and medium-sized businesses as well.
If you are active in the crypto industry and are looking for a solution to your specific banking problem, fill out our questionnaire, and hear back from one of our experts within 48 hours.