For many consumers, cryptocurrency sounds like a concept too foreign and too risky to be a safe investment. Though these currencies have been around since 2009, they are still relatively new technologies that have been chronically under-regulated since their inception.
In my opinion, one of the most significant issues with cryptocurrencies has been the hands-off approach that the banking industry has taken. Seen as too high a risk, many financial institutions have opted to bury their heads in the sand rather than confront this new challenge head-on. That’s why I’m proud to share that Surety Bank is a founding member of the Cryptocurrency Compliance Cooperative (CCC). The CCC is an organization whose goal is to establish universal standards and best practices to regulate the cash-to-cryptocurrency industry. Along with Surety, there are representatives from across the cryptocurrency industry and other financial and security institutions.
Cash-to-cryptocurrency refers to ATM or point of sale kiosks where investors can trade in cryptocurrencies or even sell them for cash. Often the term BTM is used to describe these kiosks that trade in Bitcoin. The problem that we’ve run into is that BTM operators can set their own standards without industry regulations, leaving BTMs open for nefarious characters to do business anonymously. The unregulated and anonymous nature of cryptocurrency is taken advantage of by criminals who use the technology to buy and sell illegal goods, traffic drugs and people, and commit fraud.
So how does Surety become involved with CCC? The answer is simple. We’ve been working with BTM operators for years. While many banks still have little experience monitoring cash-to-crypto transactions, Surety is paving the way. Our participation in the CCC is a nod to our commitment to evolving with the times. Cryptocurrencies may sound like science fiction today, but they’re not going anywhere. As many banks avoid interaction with this unknown technology, we’re running toward the challenge and leading the charge for our industry.
The great news is, whether you choose to dabble in crypto or avoid it altogether, the service you receive from Surety won’t change. We’re simply adding one more tool that enables us to serve our customers better. If you’d like to learn more about our participation in CCC, send me a note. I’d be happy to share more with you.
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