Best Online Crypto Friendly Offshore Banks11 min read
Reading Time: 4 minutesAs capital begins to flow into cryptos, investors often ask themselves: where should I store my digital gold? Coin exchanges are great for trading, but they don’t offer all the amenities of a traditional bank. So in came the new kid on the block – crypto-friendly offshore banks.
Think of these organizations as digital-first banks that are designed for crypto holders. The Kingdom Bank is one such platform.
As an offshore bank based in Dominica, The Kingdom Bank lets clients store their fiat currency and cryptocurrency of choice, such as Bitcoin and Ethereum, in a single safe account.
Today, let’s give The Kingdom Bank a try. Let’s explore the security, regulation and features behind the scenes. You’ll know by the end whether or not this new banking paradigm makes sense for managing your crypto wealth.
How Secure are Crypto-Friendly Banks?
Keeping your cryptocurrency safe is a primary concern for crypto holders. Cryptos have no insurance in the event of theft or loss like fiat money is, which is protected by governments should something go wrong with it. This is where crypto friendly offshore banks dominate crypto exchanges or self-custody storage.
Good digital asset banks such as The Kingdom Bank take extensive security measures to safeguard customer funds.
Most of our assets are secured using bank-grade security solutions, such as military grade encryption, multi-factor authentication, and offline cold storage. Regular security audits, too, help identify and close loopholes.
If you happen to get hacked, many crypto banks also cover deposit accounts. The Kingdom Bank, for instance, covers deposits up to 500,000 euros in accordance with the EU guidelines.
This adds a degree of protection you cannot get with exchanges or self-custody arrangements. Those amounts are also kept separated from the operating balances of the bank for greater security.
Crypto friendly offshore banks offer what is probably the safest platform now out there to consolidate large amounts of cryptocurrencies and fiat money together.
They’re more secure than unregulated exchanges thanks to military-grade encryption, insurance, offline storage and ongoing auditing.
Are Crypto Friendly Banks Regulated?
The biggest issue for crypto users is whether the money will be covered by laws or not. While decentralized exchanges are completely unregulated, reputable crypto banks are supervised and controlled by financial regulators.
The Kingdom Bank, for instance, holds a Class A Banking License from the Financial Services Authority of Dominica. It is also authorised and regulated by the Financial Services Unit under the country’s Offshore Banking Act. This places the bank under careful regulation and monitoring in terms of AML/KYC and stability.
While not all jurisdictions yet clearly regulate cryptos, partnering with a certified and regulated bank gives you options to resolve disagreements with the local financial ombudsman or courts.
Some highly rated crypto friendly offshore banks provide a well-regulated option for those worried about regulation.
Can I Hold Both Fiat and Cryptocurrency in the Same Account?
Probably the most notable aspect of crypto-friendly offshore banks is the fact that you can have both fiat and most popular cryptocurrencies on the same account. It’s much easier to use than having a separate crypto exchange and bank account.
With The Kingdom Bank, you can have your US Dollars, Euros, British Pounds and Bitcoin, Ethereum, USDT, XRP and other currencies in one account.
The funds are kept separate for security purposes, but can be accessed from the same account.
With this interoperability, crypto-to-fiat funds can be seamlessly transferred for payment, trading or savings.
Both fiat and cryptos can be easily deposited, bought and spent or transferred. No more sending and receiving funds between multiple exchanges and bank accounts.
The following are some of the major advantages of consolidating crypto-fiat accounts:
- Convenience of viewing consolidated balances
- Single sign-on for all transactions
- Easy transfer between currency types
- Potential tax and accounting benefits
- Ability to take advantage of price fluctuations in crypto vs fiat.
A multi-currency wallet makes it easier for active traders and investors to keep track of and manage their funds. It’s a stand-out feature of crypto offshore banks.
What are the Fees for Crypto Transactions?
Of course, crypto-friendly offshore banks must charge fees to continue to operate and provide their specialty services. However, reputable players such as The Kingdom Bank do try to keep the costs very minimal for customers.
Let’s take a look at some typical crypto transaction fees:
- Deposits and withdrawals: The vast majority of banks don’t charge for fiat or crypto deposits. Fees vary from 0-1%, depending on the currency and transfer type.
- Trade & Exchange: Trading between supported cryptos and fiat is either 100% free or at a very low 0.1-0.5% spread.
- Account Maintenance: Typically no fees if you maintain a low balance in your account; otherwise, $100-300 per year.
Prices aren’t that steep, considering the niche services. Most day-to-day activities such as deposits, withdrawals, and transfers are free or charged with a small fee.
Larger banks could charge even lower fees to attract high asset customers.
Which Bank is the Best to Do Offshore Crypto Bank Online
Now you know what crypto-friendly offshore banks offer and why they’re worth it. But which is the best option?
The Kingdom Bank is unique in several ways:
- Secured with EU deposit insurance up to 500k euros solid protection from the EU deposit insurance.
- Dominica Bank Class A bank license prudential supervision
- Supports Bitcoin, Ethereum, USDT and others for storage and exchange.
- Integrate crypto and fiat accounts for easy management.
- Easy to use web and mobile interfaces for access at any location.
- Bank wires and cards for international crypto spending
- Reputable founders and KYC verification – The only way to be sure.
For active crypto traders, investors or holders of digital funds, The Kingdom Bank is a one-stop platform where you can store funds, transact and access crypto and fiat market opportunities from any part of the world. It’s certainly a must-try for online crypto banking requirements.
Secure offshore banks are a necessity for cryptocurrency users. They connect the decentralized digital asset market with traditional banking systems.
Banks such as The Kingdom Bank can hold your crypto assets safe and worry free knowing there are regulations and all the conveniences that come with a banking institution. It’s certainly worth it if you want to use crypto banking.
