Azbit is a cryptocurrency exchange with built-in margin and algorithmic trading. It is an investment platform offering social copytrading, SAMM accounts and portfolio management tools. Traders using the services of Azbit’s investment platform avoid organizational headaches. They can engage in trading and participate in ratings, and use this to attract potential investors. The regulated Azbit Global exchange will allow trading in altcoins and utility tokens. It will not support fiat currencies, which will help to avoid additional legal work and verification issues, thereby supporting the service’s alertness and scalability. Feature of the EU-regulated Azbit Pro exchange will be the opportunity to work with Azbit Shares security tokens (AZ).
Today, even opening a regular bank account is usually not possible for blockchain projects. Furthermore, it is not uncommon for banks to freeze or close the accounts of projects already running, putting their business processes under threat. Traditional banks do not always understand the cryptocurrency business, so the latter is always seen as high-risk. The tougher rules brought in by regulators and correspondent banks have added to the suspicion and mistrust of the cryptocurrency industry among commercial banks. Correspondent banks have imposed huge fines for breaches of legislation, which is only making traditional banks even less willing to work with crypto projects. Their familiarity with the challenges of the market will help us to provide banking services and to perform all the statutory procedures strictly and rigorously while meeting the requirements of the cryptocurrency industry.
Regulatory pressure on banks and payment systems
In recent times, many banks have experienced difficulties, and have had to pay huge fines for various infringements. Just three or four years ago, working with the dollar was not a problem for banks. New laws adopted in the US on countering the financing of terrorism and AML/KYC procedures and compiling internal bank reports and submitting them to regulators. According to these rules, electronic payment systems also present risks and need to be fully controlled. With this in mind, the US has imposed even tougher regulations, including control over all traceable bank transactions. It is no secret that, ostensibly to track possible financial transactions by terrorists, the US Treasury Department, as well as the FBI and the CIA, have extensive access to the SWIFT system and track the majority of transactions. Following the US’s example, albeit to a lesser extent, Europe has also started to toughen its regulations. Violations of the rules for working with American correspondent banks now bring draconian penalties.
For example, Visa and MasterCard have stopped servicing most plastic cards supporting cryptocurrencies. Admittedly, the reason given is that they do not meet the criteria for being part of the financial system. As a result, major players such as WaveCrest have lost practically all their business. Their payment cards were used by most leading crypto projects, such as Xapo, Advanced Cash (AdvCash), TenX and Bitwala. All of these issued WaveCrest cards. As they have a contract with WaveCrest, they have also been affected. Naturally, this has not stopped the emergence of new solutions and suppliers, but the situation with regard to issuing plastic cards for crypto projects remains complicated.