A de facto fintech crypto-friendly startup Arival Bank is preparing to launch beta testing on Thursday. The Puerto Rico-based firm now has a team of 20 with offices in Singapore and Miami, Florida as well.
However, you might need to show what’s in your wallet to bank with Arival. This allows its blockchain (provided by the analysis firm Elliptic) to scan through transactions to see if there are any suspicious transactions through users’ wallets.
According to the firm’s co-founder and CEO Jeremy Berger, this is to ensure that their clients are regulated and legally compliant issuers, because the firm has no intention of servicing them otherwise.
The beta stage allows clients to open a business account exclusively with Arival. In the blockchain, they can park and transfer funds around the world whenever they need it.
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Future plans involve individual accounts, card issuance, analytics to assist businesses and remittances with different currencies. The firm also plans to integrate lending and deposit, as well as savings products eventually.
Meanwhile, Berger is looking forward to venture-backed crypto and fintech startups. These would hopefully allow overseas crypto exchanges to allow dollar deposits even without a US bank account.
It’s Less Private than Most Cryptocurrencies
Transactions with cryptocurrencies are usually anonymous. But Arival’s dealings somewhat prove otherwise. This is due to the uneasy relationship between traditional and crypto markets in accordance to certain laws.
More specifically, the firm has a fear of enforcement actions if regulators find illegal activity in the platform such as money laundering and sanctions violations. The firm’s revenue from these transactions “aren’t enough” to justify these risks, and will only therefore work with customers with “due diligence.”
Monitoring these transactions would therefore keep both Arival and its customers safe, as long as the firm’s compliance department would pay attention to where the clients are from, their transaction volumes, and other factors.