Neobank Volt, the latest offshoot of Volt’s banking-as-a-service (BaaS) strategy, has partnered with BTC Markets, a cryptocurrency exchange in Australia, to provide banking services to its clients. According to a report from Business Insider Australia, the partnership will see Volt roll out the entire banking infrastructure BTC Markets’ customers need to buy and trade digital assets.
The partnership is a result of increased regulatory pressure in the country, which has seen many banks deny services to clients that engage in cryptocurrency trading. Westpac, one of the largest Australian banks, has been among the most heavily criticized — customers told Business Insider Australia the bank refused to process transfers to trading accounts on cryptocurrency exchanges.
Steve Weston, the co-founder of Volt who served as a banker at NAB and Barclays, believes major banks’ refusal to get involved with cryptocurrencies is a reflection of their risk appetite.
“They’re still remediating past issues and despite some of their people internally telling them they need to understand crypto, it’s just one more issue they don’t want to have to talk to the board or shareholders about,” Weston said. “They just don’t want the hassle.”
Caroline Bowler, the CEO of BTC Markets, said the partnership with Volt shows the amount of effort the exchange is willing to go through to meet Australia’s regulatory requirements. The huge increase of customers in their early 60s has also pushed the company to introduce better compliance, she explained in an interview.