Cryptocurrency bank account
A cryptocurrency bank account refers to the use of an account with a banking or financial service provider to manage digital currencies. Since 2008, there has been wild growth of interest in cryptocurrency banking. It has become extremely popular because anyone wanting to buy, sell and trade cryptocurrencies can now do so with just an internet connection.
GBO has been on the cutting edge of the cryptocurrency revolution. We are advising hundreds of corporate customers through every step of the way to add cryptocurrency handling into their financial structure.
Some of the key concepts that must be understood are:
- Cryptocurrency – they are money tokens circulated using cryptographic techniques without the involvement of a monetary authority or central bank. People can buy, sell or trade them securely. A cryptocurrency (or “crypto”) is traded outside of the conventional financial infrastructure.
- Cryptocurrency exchange – also known in some jurisdictions as digital currency exchange (DCE), allows customers to trade cryptocurrencies or digital currencies for other assets, such as fiat currency or other cryptocurrencies. Users can bid for, offer, purchase, and sell their cryptocurrencies using cryptocurrency wallets
- Crypto bank account – many digital banks and EMIs allow customers to control their cryptocurrency assets precisely as they do fiat currencies.
- Crypto wallet – is a digital account that enables the purchase, storage and spending of cryptocurrency assets.
GBO Corporate Services is leading the way as the premier facilitator of cryptocurrency services for companies looking for guidance in processing cryptocurrency transactions through the fiduciary banking system.
Crypto bank account for crypto business
Crypto bank accounts may be necessary for multiple purposes, including:
- Investment in cryptocurrency
Cryptocurrency investment has become a significant component of digital finance. Since the first full cryptocurrency launch in 2008, many billions of dollars have been invested for both short-term and long-term holdings. As further growth in the scope and function of digital currencies is likely, there is a strong demand for digital banking services offering the same facilities as merchant banks now do for conventional business
- Trading cryptocurrency on exchanges
Billions of transactions are conducted each day in cryptocurrencies. A cryptocurrency exchange (also called a digital currency exchange) is a digital platform that allows customers to trade between conventional fiat money and cryptocurrencies and swap between different digital currencies. A cryptocurrency exchange can take a commission fee on each transaction or make the market with a spread between buy and sell prices, taking the difference as its fee.
Exchanges can transfer cryptocurrency to and from a customer’s personal cryptocurrency wallet. The denomination of funds kept in accounts may be fiat or digital currency.
Some companies are now allowing for the movement of funds between themselves and suppliers, corporate customers and service providers to be in cryptocurrencies. They need to set up a bank account for crypto business either within their existing finance infrastructure or on a crypto-friendly bank.
Companies transacting business on the Internet can now allow for payment for goods and services in digital currencies directly from their customers’ crypto wallets.
Crypto wallet for business
When companies start to transact B2B and B2C business, they will have to set up one or more crypto wallets for business integrated with their bank account so that crypto business is integrated with their financial systems and payment processing platforms. If their regular corporate banks do not offer such a service. In that case, it will be necessary to open separate crypto wallets for business in a crypto-friendly bank that provides integrated facilities for cryptocurrency and allows them to integrate their online banking portal.
What are the different types of Crypto Wallets?
Software wallets (also called online, mobile, desktop, and hot wallets) allow customers to manage their digital assets online. These wallets use cryptographic keys stored on a device with secure access to the Internet. Software wallets provide more flexibility but may be more vulnerable to hacking than cold wallets.
Cold wallets (also known as hardware wallets) are stored on a physical device that does not access the Internet. They are more secure, but less convenient.
Hosted wallets are stored on a secure third-party web server. They represent a digital record of crypto assets and can be linked to the user’s account. They are, like hot wallets, more convenient for use but generally more vulnerable to hacking. An alternative to a hosted wallet is the decentralized wallet that doesn’t require a third-party service to transact or store the cryptocurrency. This reduces the security risks associated with hosted wallets.
Crypto-friendly Business Account
A crypto-friendly business account in a financial institution allows you to trade, swap and exchange cryptocurrencies. This allows you to deal with cryptocurrency transactions in the same way as you deal with ordinary hard currencies.
GBO has strong connections with crypto-friendly business banks that will be happy to partner with your company and establish a crypto-friendly business account. We can pave the way for the smooth introduction of cryptocurrency banking for you. As a professional consultancy, we have established a solid relationship with reputable European banks in the countries at the forefront of digital currency banking.
