ICO News: UK-Based Upcoming ICOs Face Uphill Banking Battle
Trading companies that deal in cryptocurrencies are being turned away by UK banks. As an alternative, those companies are turning to Gibraltar, Poland and Bulgaria as alternate places to open accounts. As is a top concern for all regions, UK banks don’t want to get involved with any of the fraud or scams that have unfolded inside of the cryptocurrency universe. Perhaps cryptocurrency participants may want to consider using a cryptocurrency-focused bank, such as the upcoming UK-based Fiinu ICO.
“Nobody will give us a bank account in the UK,” according to James Godfrey who leads capital markets at cryptocurrency trading platform BlockEx, as quoted in the FT. Metro Bank went so far as to close Godfrey’s UK account. The exchange now instead depends on a Bulgaria-based lender to keep operations going. Others cryptocurrency participants say their Bulgaria-based accounts were short-lived.
Meanwhile, reopening foreign accounts leads to increased expenses for companies that facilitate the trading of cryptocurrencies. And the Financial Conduct Authority has expressed concerns that not allowing cryptocurrency-exposed accounts at British banks stifles fintech competition.
Upcoming ICO Is a Blockchain Friendly Bank
Fiinu dubs itself as a “blockchain friendly British bank.” While they are still seeking approvals from the Bank of England, Fiinu expects to become a fully licensed bank by Q3 2018. This should make it simpler for other cyrptocurrency related entities to have accounts in the region. In fact, one of Fiinu’s promises is that users won’t have to fear account closure even if they do business with blockchain systems.
Their credit products are designed for the small business and consumer markets that are underserved by traditional banking. Ultimately Fiinu seeks to narrow the divide between the centralized and decentralized banking communities.
The upcoming Fiinu ICO of the FNU token, which can be purchased with ether, is scheduled for November. The ICO pre-sale is unfolding now. Most of the proceeds from the sale will be placed in escrow until the company receives its banking license from the BOE.