A bank in New York has found a new way of earnings, by doing business with the cryptocurrency firms. And it is now included in the list of Financial Institutions of the US to embrace this trend.
A checking account for a bitcoin ATM was opened by Quontic Bank and they are also in the process of completing a contract to deliver banking services to another crypto startup. They did not name any of its clients.
Steven Schnall the chief executive of Quantic said: “We are just taking steps towards improvement so when the banks environment starts accepting the cryptocurrency we don’t have to start from the beginning. We are looking for diversification and offering our customer mix services in the field.” He also mentioned that he wants his business to expand and impact millions of Americans.
The banks that allow cryptocurrency trade are extremely rare because of the extra effort and work they have to put in with complying with anti-money laundering (AML) and know-your-costumers regulations (KYC).
Joshua Klayman, head of blockchain and digital assets practice at law firm Linklater said: “The financial Institutions and Banks have to look out for any suspicious activity” he further said: “If you have a startup that raised money doing an ICO and does not do proper AML and KYC, that bank does not know who the proceeds are from.”
Some of the US banks are willing to serve the sector include Silver gate in California and Signature and Metropolitan Commercial in New York.
Quontic is also a relative of this pipsqueak in the banking industry. With $420 million assets, it is only 0.015% the size of JPMorgan.
Quontic stands out only because it has caught the bug of cryptocurrency bug early on.