Quontic Bank, a New York based bank having $420 million USD is a relative pipsqueak in banking industry, has taken an initiative to embrace crypto sector joining some U.S. financial institutions opened a checking account for a bitcoin ATM company. It is in agreement with another crypto startup for delivering banking services.
The thought of chief officials of the bank is that they want to take the chance of crypto market when it will be accepted fully by regulatory authorities. So they are completing backlogs because it will help them easily accept the challenge and cope with the contemporary.
The contract may stimulate millions of the native. Crypto business system or sector is to the extent of Know your customer and anti money laundering process but the concern is rare that the bank has taken to be.
Suspicious activities will be overlooked by banks but banks can’t guess who the proceeds are from if they don’t do KYC or AML before raising funds by ICO. For serving the sectors, there are a very handful amount of banks.
Learners of Crypto
To tell about the learners of crypto first of all to say about Schnall and Patrick Sells, chief innovation officer of the bank, who fabricated an ethereum mining operation in January 2018. As a long time mortgage lender Schnall is famed to people, who brought his first bitcoin at $75 in 2013 and missed out 500 BTC in the Mt Gox stampede got interested in bitcoin at that time it was worth less than $1,.
They had an intention to launch a segregated cryptocurrency and packed of $2.5 million for Initial Coin Offering but cancelled the planning after market crushed. Even after the incident, bankers yet think there will exist a symbolic relationship between banking and crypto and they have belief.
The bank assisted educating their staff and intent to appointing employees with experience in cryptocurrency.
It’s really a gigantic stepping up issue that banking sectors are showing their willingness to embrance crypto and to provide services relating to it. The company’s reporting wasn’t according to the standards of Quontic as a result it was failure to tracking the currency transaction reports filed to regulators. Then the company opened an account at Quontic and such professionalism should be laid in crypto startups. Companies of crypto should belong to strong controls, internal audit and robust system of compliance. A strong strategic motivation should be there for them for example meaningful deposit balances.