Coinfloor, the longest-running crypto exchange in the UK, has partnered with electronic money institution (EMI) Enumis to offer bank-like accounts to firms dealing with cryptocurrencies. Enumis is an institution that enables companies to provide financial services, including debit and credit cards, as well as current accounts.
Under the partnership, Coinfloor will receive payments for any referrals to reputable crypto-focused businesses that successfully open current accounts. Apart from the amounts they will receive, Coinfloor hopes that the access to fiat accounts will draw start-ups to use their exchange.
“Being insiders in the crypto space we are aware of crypto companies operating as good and compliant custodians, and so now we will vet and review these and recommend them to Enumis for onboarding,” Obi Nwosu, CEO, Coinfloor
Enumis is not a bank. It was founded in 2010 as an electronic money institution (EMI) and authorised by the U.K. Financial Conduct Authority. Importantly, it is linked with leading payment networks such as the U.K. Faster Payments Service, Mastercard, BACs, and CHAPs.
“I have to be careful with my words because we are obviously not a bank…We issue electronic money, but from the perspective of someone using the facilities, you are effectively getting the same sort of functionality.”Said Ali Latif, CEO and founder of Enumis.
Through the partnership with Coinfloor, Enumis will provide crypto-based firms with current accounts with API capabilities, online banking, and a debit card that gives users a 0.2% rebate on usage at Coinfloor.
For a record, it is quite tricky for any business that deals in cryptocurrency to have a bank account. Despite the few exceptions such as Circle and Coinbase that have an account with Barclays, most banks give crypto firms a wide berth. Generally, banks fear the effect of handling crypto that emanates from crime and the dent such news would have on their reputation.
Due to this, many crypto-based firms resort to using a dubious Panamanian bank Crypto Capital. However, with Bitfinex losing $850 million and Canadian exchange Quadriga CX also losing $190 million through the bank, the new partnership will help crypto businesses to overcome their financial limitations.