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News -> Bank Escrow Solution for Large OTC Bitcoin <-> Fiat Transactions


Bank Escrow Solution for Large OTC Bitcoin <-> Fiat Transactions

The world of cryptocurrency  is rapidly coming upon us. It is accepted now as an official secure exchange mechanism between buyer and seller in purchasing of goods, signing of contracts dealing with various government agencies and the like. We will not go into the details here of how it works - readers of this already understand at least the basic principles. But what is important is that this is growing world wide and (hopefully) one day replace the banking system that imposes so many restrictions on what we can and cannot do with our money - not to mention keeping what we do with our money private.

Unfortunately that day is not here yet. We still must use banks and pay bills using the traditional banking system. The people that have mined or currently own cryptocurrency are ahead of the curve, but they still must function in the current world. Similarly people that want to buy cryptocurrency only have fiat currency to do so.

So what to do??

Fortunately KEVELEX has a solution for both buyer and seller of cryptocurrency. For now we can only offer BITCOIN, which is the main cryptocurrency in use today.

We have a bank in a Western European nation that will handle exchanges between Bitcoin and fiat currencies that is secure and of the highest integrity. This bank will also deal with any intermediaries that are involved in these transactions, meaning that the bank will ensure that proper commissions will be paid .

This offer is limited to the following types of transactions:

- regular trades of USD $300,000 and higher with an accumulated volume of USD 3 million and up
- individual transactions of USD $5,000,000 and up

Here is how it works:

  1. The buyer and seller of Bitcoins must each set up a corporate account in the transacting bank. The compliance for both parties will be strong. So monies from both sides must be clean.
  2. If an intermediary is involved in the transaction he must also open a corporate account. What is important is that the company must not be from a low-cost jurisdiction. A UK partnership, or a Gibraltar company would be accepted from a low-cost jurisdiction however.
  3. The bank would then prepare an ESCROW e-WALLET to execute the transactions.
  4. We would create the escrow  contract to be signed by all parties, with prior approval from the transacting bank. The contract would include the intermediary if he is involved. Full non-disclosure among all parties will be in this contract
  5. for each transaction, we would place an addendum in the escrow contract with current conditions. The seller then transfers the Bitcoin to the e-wallet. The buyer transfers the fiat currency (EUR or USD) to the escrow account at the bank. In the case of a cash buyer, the cash must be delivered to the bank, counted, and verified before crediting the escrow account.
  6. The bank then liberates both the Bitcoin and the currency to the respective parties and credits the intermediary if needed. Kevelex would then take its handling fee according to the escrow contract.
  7. Fees for the intermediary must be approved by the bank. This is for AML purposes. A commission that is deemed too high will be rejected on these grounds.

There are setup and transaction fees that need to be paid to both Kevelex and the bank. These will be discussed once we know that the buyer and seller have passed due diligence and are ready to proceed.

Contact KEVELEX to execute all future Bitcion - currency transactions.