The move towards becoming a blockchain bank has been primarily driven by the strong need for crypto-friendly banks as most individuals and companies with any Bitcoin or cryptocurrency related activities are in fear of banks shutting down their bank accounts, according to the company’s press release.
Bitwala itself has suspended its services in January 2018 as a result of regulatory changes. These instances have fueled demand for a strong, independent crypto-first banking foundation for the crypto economy.
Future accounts will come with a German IBAN and will be fully regulated by The Federal Financial Supervisory Authority of Germany (Bundesanstalt für Finanzdienstleistungsaufsicht) or better known as BaFin. Individual deposits will be protected up to EUR 100,000, deposit guarantee scheme of German banks.
Launched in 2015, Bitwala created a digital payments processing system using blockchain technology. In 2016, it received seed funding and secured a series A funding in 2017 from Barry Silbert’s Digital Currency Group and High Tech GruenderFonds - German government’s seed investment fund.
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