In Hong Kong, a startup is preparing to launch their first Visa crypto debit card in the region.
In order to proceed, they required a regular license and approval to issue 100,000 cards in Singapore in the next two months.
The company, formerly known as Monaco, is now called Crypto.com, and plans to also apply for licenses to issue credit in Singapore and Hong Kong: the goal would be to get to offer loans secured by cryptocurrencies.
If this goes well, the company’s Visa cardholders will be able to apply for loans guaranteed by bitcoin and MCO, the Crypto.com token, but will only be able to obtain up to 60% of the value of the cryptocurrency pledged as collateral.
The company will perform the Know Your Customer online procedures for debit card applicants, but will not check the credit history of loan applicants: the guarantee offered by the token deposit will suffice.
The South China Morning Post reports that the 100,000 cards are ready to be shipped to local customers in the coming months, starting with those in Singapore.
The company has already obtained a license from the Singapore Monetary Authority for the deposit of securities, while Visa debit cards are issued in collaboration with the German Wirecard Bank.
Kris Marszalek, co-founder and CEO of Crypto.com, said: “To holders of cryptocurrencies, having the peace of mind that you can readily convert back into fiat currencies and cash out is very important. Not all exchanges support crypto-to-fiat transactions, and even if you hold your digital assets at the exchanges’ wallet, the withdrawal process is also complicated.
We believe our product addresses a real need, and enhances trust in digital assets”.
This debit card supports five cryptocurrencies: bitcoin, litecoin, ethereum, MCO and Binance Coin, which can be converted into seven fiat currencies, including the Singapore dollar, US dollar and Hong Kong dollar.
To finance the initiative they raised $26.7 million with its own ICO in May and June of last year. Their token is already traded on 21 exchanges.