" class="no-js "lang="en-US"> Banks should cooperate with crypto says Simplecoin - Fintech Finance
Thursday, May 30, 2024

Banks should cooperate with crypto says Simplecoin

It’s time for banks and crypto businesses to find better ways to work together, according to Simplecoin, the Czech Republic’s oldest and largest crypto exchange.

Currently, numerous banks are reluctant to accept companies that deal with digital currencies as clients because of concerns about regulatory compliance and because of the unfavourable risk assessment they perceive that crypto represents.

But as crypto matures, some companies within the industry can demonstrate long term credibility. In fact many cryptocurrency businesses have adapted to the changes and challenges associated with regulation and have implemented risk assessment measures that actually exceed the levels that banks themselves adhere to.

“Cryptocurrency businesses like Simplecoin already have a track record of robust compliance with AML and KYC procedures and fully transparent accounting. We have proved we can play the compliance game just as well as banks. Therefore banks should seize the advantage and build fruitful and long lasting partnerships with legitimate, legally compliant crypto businesses. It is an underserved market which will be profitable for banks for the foreseeable future,” says Pavel Niedoba, CEO of Simplecoin.

“In the Czech Republic, when cryptocurrency businesses are forced to move abroad due to a lack of banking options in their home country, their taxes also move with them. In these instances it should really be politicians who decide what kind of businesses can be run, not banks.

“It is unlikely that all banks, everywhere, can ban cryptocurrencies. The ones that do are missing out on opportunities for cooperation. They are not, in any way, stopping the spread of the industry. In fact the restriction of banking services is a strong argument for the wider adoption of digital currencies.

“Simplecoin offers its cryptocurrency trading services throughout all of Europe, but it is Prague-based and a therefore a Czech company at heart. We do not want to move or register anywhere abroad because of any lack of Czech banking services.

“Experience has shown that banks and cryptocurrency businesses can work together successfully, so they should not be afraid to seek new opportunities to cooperate,” Niedoba adds.

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