Swiss Fiat Withdrawals (No KYC)
Users will be allowed to exchange up to $5,000 worth of crypto into fiat via the gateway provided by MyEtherWallet and Bity within Switzerland.
MyEtherWallet and Bity
MyEtherWallet (MEW) - the Ethereum (ETH) wallet provider - and Bity - the crypto finance platform - have released a fully-regulated crypto-to-fiat withdrawal system which doesn't require users to pass Know-Your-Customer (KYC) checks.
The company owns a wide network of crypto ATMs in various Swiss cities including Zurich, Basel and Zug and has an established presence in the country in compliance with the Swiss Anti Money Laundering Ordinance (AMLA).
The "Exit-to-Fiat gateway" will allow cryptocurrency holders to exchange their digital assets, including Bitcoin (BTC) and Ethereum (ETH), into euros (EUR) or Swiss francs (CHF). Currently, the limit for KYC-less transfer is anywhere up to 5,000 CHF, roughly $5,000 at the present exchange rate.
This Exit-to-Fiat gateway is a gamechanger for cryptocurrency users around the world because it allows people to exchange crypto to fiat without needing to be KYC verified.Kosala Hemachandra - Founder & CEO at MyEtherWallet
Alexis Roussel highlighted that their technology could “verify proof of wallet-ownership” without requiring users to provide personal information so as to validate their identities. He also pointed out that it would open up a new avenue for users, providing access to fiat-crypto exchange services outside the established platforms.
Our technology [...] will finally open doors for users to access a cryptocurrency exchange service that is KYC-less, yet regulatory compliant.Alexis Roussel - Founder & CEO at Bity
This comes as MEW announced the launch of its version 5 wallet, which Bity has also fully intergrated now. On top of that, V5 comes with an improved UX/UI, making the wallet more accessible for beginners.
The whole idea is to allow users to effectively "shop-around" for the best rates and offers, hopefully lowering transaction fees and making the exchange aspect of the sector more competitive.
Why is this important?
In the past, KYC checks have become a pre-requisite for most exchange services looking to get on the right side of regulators. Despite many crypto users - especially early-stage ones - complain KYC means they have to submit personal information to private, for-profit companies, few can now operate without it.
ShapeShift - the popular exchange service - has resisted calls from the regulators and the market to add the KYC feature for months, however, they eventually gave in by the end of September last year. As a direct result of this measure, the trading volume on their platform has collapsed since many of its users moved to less-strict platforms.
Bity in Switzerland
Bity has a history in Switzerland and can prove transactions are legitimate; the money restriction prevents the service being used for mass-money laundering operations. Once thought to be a thick red line, today’s news shows it’s possible, for the right company in the right jurisdiction, to offer some sort of compromise on KYC.