Crypto.com Seeks Approval to Issue Crypto Debit Cards in HK

Hong Kong-based blockchain firm Crypto.com, which developed Asia’s first crypto Visa debit card, announced that it was seeking approval to issue cards in its home-city, South China Morning Post reports. By the end of October, the company plans to distribute over 100,000 cards to clients worldwide, starting with Singapore. Also, the company wants to expand its business by offering lending services.

Kris Marszalek, co-founder and CEO of Crypto.com, said that crypto holders would like to enjoy the option to convert their funds to fiat money and cash out.

“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,” he added.

Crypto.com, which rebranded in July 2018 by changing its name from Monaco, wants to get money lending licenses in Hong Kong and Singapore. The company plans to expand its business from a crypto Visa debit card service into a cryptocurrency-oriented lender. Under the new strategy, the startup plans to help its users take out loans, using Bitcoin and MCO, Crypto.com’s token, as collateral.

The company has received a stored-value facility (SVF) license from the Monetary Authority of Singapore (MAS). It collaborates with German Wirecard Bank to issue the Visa debit cards.

Marszalek hopes that the debit cards and the upcoming lending solution will eventually transform the credit card business. He doesn’t agree with the banks that are issuing unsecured revolving credits.

“The credit card business model is one that is bordering on unethical business, as banks make a big chunk of profit from people who cannot afford late fees. These people should not be given a credit card in the first place,” Marszalek noted.

He added that his company wouldn’t be exposed to any credit risk from its users given that they’ll be allowed to borrow up to 60% of the cryptocurrency value used as collateral. Crypto.com will impose KYC procedures to its debit card applicants, but users won’t have to worry about their credit history before getting a loan.