Posted 2 years ago | by Ben Armstrong

Bank Embracing Crypto

Quontic Bank has started doing business with the cryptocurrency firms. This small bank in New York City is joining the short list of a financial institution in the US to welcome this sector.

Only a few weeks ago, the bank had opened a checking account for a company dealing with Bitcoin ATMs. It is in the process to complete a contract of delivering banking services to another cryptocurrency start-up. The financial institution is not ready to disclose the name of either client.

Steven Schnall, the chief executive of Quontic said that they are only taking baby steps simply because they don’t want to be left behind when the regulatory environment starts being more crypto-friendly.

Schnall had acquired the bank in 2009. He goes on to say that they want their customer mix and product offering to be diverse by making an entry into this field.

However, he did not make any comment regarding how big he would like their crypto business to be. He has claimed that their contract is going to affect millions of Americans.

Crypto-friendly banks are quite rare. This is mainly because they have to do extra work to comply with anti-money laundering and KYC regulations.

The head of digital and blockchain asset practice of Linklaters, law firm, Joshua Klayman has said banks and all other financial institutions need to look out for all types of suspicious activities. He says that if someone has a start-up which raised money while doing an ICO and did not do AML or KYC appropriate, the bank will not know whom the proceeds are from.

There are only a few banks in the United Nations which include Metropolitan Commercial and Signature in New York and Silvergate in California.