Cryptocurrency exchange giant Coinfloor, which is unarguably the longest-serving exchange in the UK, on Wednesday, May 29, announced its partnership with electronic money institution (EMI) Enumis, to help crypto firms access a bank-like service.
The latest collaboration between the exchange firm and financial giant will see Enumis pay Coinfloor a fee for referring notable crypto firms that have successfully set up current accounts in the UK.
Explaining their role in the latest venture, the CEO of Coinfloor, Obi Nwosu, stated that:
‘’Being insiders in the crypto space, we are aware of cryptocurrency companies operating as good and compliant custodians and so now we will vet and review these and recommend them to Enumis for onboarding’’.
When quizzed on the technicalities of the partnership and highlighting some grey areas, Nwosu, said:
‘’I think brokering is technically the wrong word, but we are working in partnership with Enumis and introducing clients to the offering.’’
Furthermore, he stated that the new deal will be beneficial to the crypto community, especially if the community work together as a team. Coinfloor is very optimistic about the deal, especially with the hope of getting access to fiat accounts.
Coinfloor is an ambitious company, with the aim of being the premier fiat bridge in the United Kingdom. The company was established in 2013 and currently have about 50,000 customers, but wish to expand its customer base.
A Unified Crypto Community
Nwosu is of the opinion that a divided house cannot hold and even though they are indirectly helping their direct competitors, the partnership is very healthy for the crypto community. He said:
‘’But this is about helping crypto firms who are doing things the right way to succeed, something we are doing, even though we realize they are competitors. We would argue that if we are all succeeding, it is quite beneficial for everyone.’’
Cryptocurrency firms have often had the problem of holding onto a bank account. Most financial institutions are skeptical about dealing with crypto firms due to the incessant cases of cyber -crimes and all other criminal activities facing the digital currency market.
Although Enumis cannot be categorically called a bank, it offers a whole lot of financial services. The firm was established in 2010 and it is authorized as an EMI by the UK’s financial regulatory authority, from which it holds a customer credit license.
Consequently, its services are wired into payment networks such as CHAPs, BACs and MasterCard.
Efforts are ongoing to curb the menace of crypto crimes, Bitcoin Exchange Guide in November, reported that US Deputy Attorney General Rod Rosenstein is worried about the level of crime in the crypto space and have urged the United State regulators to investigate the situation.
Rod also called for wider cooperation on the international stage to investigate crimes related to cryptocurrencies.
Analysts are of the opinion that if the crime rate in the crypto world can be reduced, banks and even the wall street will openly embrace the digital currency community.