Switzerland-based fintech company Eidoo has been granted a coveted anti-laundering licence for its cryptocurrency solutions.
The company’s cryptocurrency wallet and hybrid exchange system have been awarded the Financial Services Standards Association (VQF) licence in Switzerland, after a lengthy verification process. With the licence, fintech companies are able to say their products support anti-money laundering laws created by the European Parliament.
Other members of the VQF include banks, independent asset managers, trust companies, and capital investment schemes. Meanwhile, Eidoo represents the growing fintech market in Europe.
Complying with fintech laws
As the European Commission continues to crack down on illegal uses of cryptocurrencies, Eidoo says it is now perfectly positioned to build new public trust in these currencies and their supporting technologies.
New rules drawn up by the EU are part of its attempt to stop criminals from using cryptocurrency trading platforms and custodian wallet services to launder money. Under the legislation, crypto providers must implement stricter customer due-diligence processes, such as identity verification.
Eidoo’s solution differs from the competition in that users have access to a private key for its initial coin offering (ICO) engine and hybrid exchange, which improves overall security.
The licence award is an important step in developing their technology further. Companies that hold the licence are able to function as Swiss Financial Market Supervisory Authority-recognised self-regulatory organisations.
Thomas Bertani, director of Eidoo, said he is “thrilled” that the company has “obtained such a landmark accreditation”. He explained:
The VQF license is solid proof that the hard work and dedication of our team to create a respected and regulated hybrid exchange, and connected services for the cryptocurrency community, has paid off. The European Commission is leading the way in the regulation and control of the crypto market and Eidoo stands shoulder to shoulder with the mission to provide a safe and transparent cryptocurrency market.
“The licence also stands the company in good stead for the imminent launch of our anticipated hybrid exchange, being already licensed by the anti-money laundering body,” he added.
Internet of Business says
At a time when cryptocurrencies face growing scrutiny, amid accusations that the technology hides criminal activity, the licence serves to protect and strengthen the system’s long-term viability. Eidoo will effectively be positioned as an approved and responsible cryptocurrency company.
Industry accreditation will no doubt help to build trust in a volatile cryptocurrency market, but the currencies themselves are still wildly unpredictable – and faced with ICO bans in South Korea (which may be lifted), and advertising bans by Google, Twitter, Facebook, and LinkedIn.
As Morgan Stanley revealed, many crypto miners are losing money at current prices. Bank of England governor Mark Carney has also voiced his doubts about cryptocurrencies. The questions, ‘What are cryptocurrencies backed by?’ and ‘Will they ever become effective media of exchange?’ still stand.