As the cryptocurrency market moves forwards, so does the worldwide financial sentiment. From first being a niche product, the digital asset industry has jumped leaps and bounds with help from mainstream institutions also.
Now the United Kingdom-based startup was applying to become the region’s first official bank for cryptocurrency and blockchain-based businesses.
DAG Global took the initiative to make sure cryptocurrency businesses could integrate with mainstream bodies so that they flourish. The London based startup was first set up in 2018 and will resubmit an earlier application to start providing accounts to crypto companies in 2021.
Officials close to the operation have aid that the bank had several constructive discussions with the Prudential Regulation Authority, the Financial Conduct Authority as well as with UK regulators. Sean Kiernan, the chief executive of DAG Global said:
“It’s a lack of understanding and reputation risk that has kept others away — we think it can be a cleaner sector [than mainstream finance]. Thus far, the regulators have not raised any red flags.”
The company had first aimed to launch its services in 2019 but that came to a standstill because of scrutiny about the bank’s business models. The FCA, as well as the PRA, have both not commented on the companies but they have been known to set regulatory standards.
The UK has always been a tough nut to crack for cryptocurrency companies. Even global corporations such as Coinbase find it difficult to obtain licenses in London. The world’s largest cryptocurrency company had a tie-up with Barclays which expired last year. The FCA’s guidelines, however, stated that decisions need to be made with an open mind adhering to anti-money laundering rules.
Stephanie Ramezan, the chief commercial officer at DAG revealed that the bank has been approached on a daily basis. She feels people were fed up of facing multiple obstacles to conducting simple transactions. According to Ramezan, users have the right to use streamlined services that do not hinder their banking experience.
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