Successfully Launching a New Bank in the Cryptocurrency World

Strategies for Launching a Cryptocurrency-Interfacing Bank

So you’ve decided to launch your own startup bank. And you want it to be competitive in the global banking world while interfacing with cryptocurrencies. Well, you have your work cut out for you because you’re going to find yourself in the middle of an epic battle between governments, which want to regulate everything, and many elements of the crypto world, which want nothing regulated. If you still wish to go forward, consider the following important points.

The Truth About Crypto Transparency

First, let’s dispel some common misconceptions about cryptocurrencies and transparency.

Banks Do Not Work with Cryptocurrencies

Many banks do not serve as sending or receiving platforms for crypto exchanges nor are they involved in crypto/fiat transactions. Banks consider their responsibilities vis-à-vis money laundering and monitoring for suspicious activities to be paramount. Interfacing with cryptocurrencies may cause them to fail to meet these obligations.

Banks Are Not Truly Autonomous

As banks and governments sort out the degree to which they are willing to interface with cryptocurrencies if at all, we must remember that individual banks do not really have the autonomy to set up whatever structures they desire. Central bank authorities establish the boundaries of the required and the permissible. The Federal Reserve regulates all banks in the United States, European banks fall under the jurisdiction of the European Central Bank, the Bank of China regulates Chinese banks, etc.

What You Need: A Business Plan and Capital

If your new bank is going to succeed in the global banking marketplace, I would recommend the following:

Husband, father, attorney, entrepreneur, diplomat, founder of Nagel & Associates LLC. Views my own. www.joel-nagel.com, nagel.attorney