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Highlights
- As per a survey, 17% of people in Australia own cryptos.
- The crypto ecosystem is plagued by the negligence shown by traditional banks and the dallying regulatory setup.
- The Volt- BTCM partnership could mean a ray of sunshine for the crypto lovers of the country.
The lackadaisical attitude of banks towards the crypto ecosystem has become an opportunity fintech companies want to grab. Neobank Volt, a licensed institution for authorised deposit-taking, is now partnering with BTC Markets (BTCM), Australia's largest cryptocurrency exchange. With this partnership, the 325,000 Australian customers of BTCM will be able to use a corporate cash management account with facilities of instant notifications and automated payments. It is an offshoot of banking as a service strategy (BaaS) of Neobank Volt. This move comes around a time when there is a paradigm shift towards online transactions and banking across the world.
Use of online banking is on a rise
Image source © Cammeraydave | Megapixl.com
Optimism around the move
Volt, which is operational in Australia since 2019, will aid BTCM users in managing their Australian dollar funds on the New Payments Platform, which is the country's national set up for fast payment. BTCM CEO Caroline Bowler remarked that this would mean a near-instant trading opportunity for the crypto trading clients of the exchange whilst expressing optimism about the innovation quotient in the Australian financial services sector. In addition, Bowler also stressed the need for proper regulations to protect investors without puncturing the prospects of innovation in the field.
Investors take note
As per Steve Weston, the co-founder of Volt, under the Financial Claims Scheme, the aggregate deposits in the deposit-taking institution's accounts are covered up to AU$250,000 per account holder. With 17% of Australians owning cryptos, this is a crucial point to note.
Tagged as the world’s first by BTCM, this partnership will mean more financial security and faster transfers for crypto investors.
Bottom Line
There is an 18-month long drill that has gone behind the partnership deal to be convincing to the Australian Prudential Regulation Authority's requirements. While traditional banks have been indulging in debanking, a Senate committee is investigating major banks blocking financial services to the start-ups in the fintech sector. The committee is also working towards designing policies for digital assets. So amidst the foggy regulatory system, there seems to be a reason for hope.
Related Read: What’s happening in the crypto space?
