Crypto.com Applies to Provide HK Clients Crypto Debit Cards
The digital currency payment platform, Monaco, recently rebranded under the name of crypto.com, seeks approval to launch digital currency debit cards within Hong Kong and Singapore regions.
A Crypto First Within Asian Nations
According to reports by South China Morning Post, the startup developed the very first digital currency Visa card within the Asian continent, and is currently looking to receive permission to provide these payment solutions within Hong Kong. The platform aims to disperse over 100,000 crypto cards to users globally, beginning with Singapore-based clientele. The blockchain based payment platform also has plans to branch out by providing crypto-backed loan services.
The Chief Executive Officer, Kris Marszalek, explained that users would appreciated the ability to convert digital funds into fiat currencies when needed. He stated that as it stands, few digital currency exchange platforms offer transactions between cryptocurrencies and traditional fiat equivalents, and for those who do, the conversion is often a lengthy or complex process. Marszalek stated that their solution accounts for a growing demand as well as promotes community trust in virtual assets.
Expanding The Business Into Crypto Backed Loans
The startup also aims to be approved for permission to loan money within the Hong Kong and Singapore region. Crypto.com plans to shift their focus from a crypto oriented payment solutions provider to a digital currency lender. Their new mission will issue clients loans accepting collateral in the form of BTC and their native token, MCO.
So far, crypto.com collaborated with German Wirecard Bank as a means to distribute their Visa cards and had also been approved an SVF license by the Singaporean MAS regulator. Company officials hope that their progression into crypto based cards and loans will have a major impact on both the crypto industry and credit system alike.
How Crypto.com Plans to Be Different
Marszalek explained in detail the main difference between their efforts to help clients and those of existing credit card models, stating that many breach unethical activity profiting from those who are deliberately charged with fees and penalties. In contrast, crypto.com clients would not suffer from credit related risks, as they would have the ability to loan as much as 60% of the value held as collateral. Although the startup will implement KYC requirements to those applying for debit cards, clients are not held accountable for credit history prior to receiving their loan.