Last week Cobinhood announced they would be offering fiat currency exchange services. Allowing their clients to exchange fiat currencies like the US Dollar and Euro should help Cobinhood attract more clients. Many crypto exchanges don’t support fiat currency exchange.
The link between the established financial system and the crypto space is still weak. There are some exchanges like Cobinhood that are working to make this impediment to widespread crypto use a thing of the past. It is vital to ensure that cryptos can be as liquid as major fiat currencies.
Cobinhood moves into deeper markets
The regulatory requirements for exchanges that deal in fiat currency are stronger than other exchanges. Cobinhood has been working to make sure that Know-Your-Customer (KYC) requirements will be achieved. These requirements are standard practice in the established financial system and are necessary for any exchange that wants to offer fiat currency-based services.
Cobinhood has received a KYC Level 3 rating, which will allow it to operate in some of the most stringent financial regulatory environments in the world. They have also partnered with Epay, so their clients can send and receive money from their exchange accounts.
Cobinhood CEO Popo Chen said this to Crypto Disrupt via email on the global movement into cryptos, “As cryptocurrency becomes more and more popular among the general public and investors, people are becoming more rational. ICO tokens are no longer associated with earning quick money, and are instead entering a new phase of stability and maturity.”
Wider use scenarios
There has been a steady movement by leading exchanges like Cobinhood to normalize their relationship with the existing financial infrastructure. The number of people who are interested in investing in cryptocurrencies around the world continues to grow, with major financial institutions looking for ways to enter the sector.
Cobinhood has created a platform called DEXON, which hopes to eliminate some of the scalability issues that the first generation of blockchain platforms face.
Popo Chen commented directly to Crypto Disrupt on the need for new solutions, as the crypto industry enters a new phase of growth, “Just as the mood surrounding cryptocurrency is maturing, so too is the underlying blockchain technology, which in many ways is the key to the development of the whole industry. At Cobinhood, we’ve been excited to debut DEXON – an open-source entity that realizes infinitely scalable, low-latency decentralized transaction processing applicable to numerous real-world applications.”
Cobinhood joins other companies like Liquidity Network, and Constellation who are looking for ways to make cryptocurrencies a viable solution for widespread consumer use. Platforms like Bitcoin and Ethereum aren’t able to come close to the kind of transactions per second that Visa can perform. That could be changing, and when crypto transactions can move faster, they could become far more popular with the general public.