International money transfers and loans secured in cryptocurrency are some of the ideas that the Kjos family has for their upcoming banking project. But first Finanstilsynet must say yes.
We are now trying to make the trading platform known. Then there is the next step. We are now creating a bank that can take care of transactions, Bjørn Kjos tells E24.
The Norwegian Stock Exchange (NBX) was recently listed on the first crypto exchange in the Oslo Stock Exchange.
NBX is currently a trading place for buying, selling and storing cryptocurrency, but it has applied to Finanstilsynet to become the so-called electronic money companies To be able, among other things, to operate cryptocurrency payment services.
The plan is to apply to Finanstilsynet for a license to conduct banking operations in the second quarter of next year, becoming Norway’s first crypto bank.
Kjos acknowledges the risks in the project.
There are always risks, but we are the ones who created the Norges Bank. We are not known to build banks. We are fully aware of the risks when it comes to crypto and blockchain technology, says Kjos.
“If there was something we were in that was really risky, it would probably be the airline,” he says.
Keos resigned in 2019 as Norway’s president after 17 years behind bars. The following year, the airline was on the verge of bankruptcy when the epidemic broke out. It was saved, but shareholder values were lost.
The Kjos family started cryptocurrency exchange in 2018. While Bjørn Kjos is the Chairman, his son-in-law Stig Kjos-Mathisen is the Managing Director. The family is the largest owner of about 40 percent of the shares.
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– The first step on the way is electronic money companies. There we have an application with Finanstilsynet. Kjos-Mathisen says this isn’t a wooden ride for them either.
“Once we get that license, we’ll build on becoming a bank,” he says.
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According to Kjos-Mathisen, the bank will use blockchain technology to transfer values between individuals, companies or banks, which will be the biggest difference from a traditional bank.
It is believed that transaction costs will be lower.
Because you don’t have to go through three or four financial institutions to send a value.
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He points to other examples of what will separate this crypto bank from traditional banks. Kjos-Mathisen believes that the practice of borrowing with collateral in a mortgage can take a step into the digital world.
– Today you have the art of digital coding. If you have a plate today you can probably get a mortgage on it. The art of cryptography is unlikely to succeed. But we, with the technology we have, will be able to mortgage it with us and borrow from it, for example.
Kjos-Mathisen believes that blockchain technology, among other things, can make international money transfers faster and easier than today.
The biggest problem is counterparty risk throughout the financial chain. If you send to the United States or Switzerland, there are likely to be at least three banks in between. They are all risking the currency because you are settling in later. They must have paid for it.
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– What is the status of banking plans?
– We’ve come a long way indeed. We’ve built the blockchain technology that is the basis for what we believe will be the banking systems of the future, says Bjørn Kjos.
The banking systems that exist today look beautiful, but they are after every 50 or 75 years. It’s a completely different technology that you’re building on today. Therefore, it can also be done at a much cheaper rate, he believes.
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The Norwegian Stock Exchange is currently registered with Finanstilsynet.
according to Supervisor Cryptocurrency is largely unregulated, without legal consumer protections for buyers. In addition to screening for money laundering, Finanstilsynet does not scan Norwegian trading platforms for cryptocurrencies.
Finanstilsynet has also repeatedly warned people about the dangers of trading cryptocurrency.
“I think most people realize that the crypto market is fickle, he says.
Permit to operate as an electronic money company It makes several demands company and supervision Monitors compliance with licensing requirements. NBX submitted its application in August last year, and it expects a response within a “relatively short time,” according to the listing document.
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Regulations today are not adapted to the new growing financial world. But I think you can work at it well. Kjos-Mathisen says Finanstilsynet is receiving adequate oversight and the opportunity to take control of the business.
He cites an example of what he believes are challenges with current regulation.
– We will manage payment services with a virtual currency. One of the prerequisites is to operate a payment service using a payment method. Is cryptocurrency a means of payment or not? There I actually faced the first challenge when it came to definition.
Bjørn Kjos says he hopes to gain more knowledge about blockchain technology.
– Today is connected with the fact that there is something that bastards do. But you have to be a blind villain to do the encryption, because you can be tracked. Gangs operate with untraceable and material money.
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He says NBX has invested a lot of money in building secure platforms, a system in which “money laundering should never be possible.”
We want it to be as open as possible, so people can understand what it is.
Several cryptocurrency exchanges have been attacked by hackers in recent years.
Recently this summer, the Poly Network platform announced a cyber attack, in which hackers escaped with more than $600 million worth of cryptocurrency, or about NOK 5.4 billion.
Kjos-Mathisen says NBX has encountered attempted computer attacks.
– He says hacking crypto companies is the bank robbery of our time, and adds:
– Of course we take safety very seriously. We have had several attempted micro-attacks against us that we have detected and monitored. We had no successful attempts.
Inquiries from banks
The Norwegian stock exchange’s share has so far received a lukewarm reception. From the opening price of 9.5 crowns this week, it has fallen to 8.5 crowns.
The company did not raise its new capital when it went public, and it has no plans for that at the moment, according to Björn Keuss.
– But obviously when we apply for a banking license, we have to see what kind of requirements come from Finanstilsynet.
– But there are many banks that have contacted us to ask if they can join. So there are different ways to go. As he says, it’s not a given that we’ll be raising money either.
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