Ask Leo: What Are Your Thoughts On Crypto Exchanges Acquiring Banks

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Bitmex announced that they will be acquiring the oldest bank in Germany, this means that they will be buying and probably turn it to a crypto power house where unlike other regular banks won’t be restricted when it comes to crypto digital assets. While this seems like a big move in the crypto world, I really don’t understand why it’s a big deal. The main reason crypto was created was so we don’t have to use the bank or need the bank. But when a crypto exchange is acquiring a bank, I have so many thoughts running through my head.

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In a post made by bitmex, this move was to create awareness and make crypto and its assets available to people in Germany, Austria and Switzerland, let’s just put it, around Europe. When crypto exchanges acquire banks, will they be immune to regulations, can they twist the regulators into letting them operate as a decentralized organization?

Bitmex is known to be one of the earliest crypto exchanges that was established, I think it was founded in 2014. One should be expecting it to be at the top since it has been in the crypto space for this long, but unfortunately due to regulatory scrutiny and all that, it was unable to operate peaceful. Not until 2021 after it decided to settle with $100 million, I guess this has given them room to operate properly after all these years. The bank about to be acquired by Bitmex is over 200 years old and is a very big move made by them, it’s quite a historical bank.

If this actually works and makes crypto products much more available to the public with ease, then crypto is definitely on its way to influencing the world one industry at a time. According to the blog after the purchase of the bank, the bank will be left to have its usual business operations but this time it will be much more crypto friendly.

Though the deal is not finalized yet and the transaction details related to the acquisition is expected to be confidential. But the deal is expected to be finalized later this year 2022 due to paper works, am sure this is going to be the first bank acquisition by a crypto exchange.

Fingers crossed, this could just be a new revolution of bank acquisition, this will likely inspire more exchanges into acquiring as much banks as possible, paving and creating more crypto awareness. Last year we saw lots of acquisition, thanks to crypto exchanges like crypto.com, FTX, Binance and other crypto exchanges. At least crypto is becoming more popular compared to 4 years ago, at least every 2 out of 10 people have heard about crypto before.

It’s going to create awareness for sure but will it be decentralized or it’s going to be a matter of decentralized centralized situation.

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5 comments
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Thank you for this post. I never heard about BitMEX and what they do so really interesting to know

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You are welcome, thank you so much for reading my post.

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I'm thinking, if this bank acquisition thing really works out, do you think that people in another continent can access it? I mean, yeah they are now a physical building but Decentralized finance is all about smart contracts right? Cos I'm thinking about the unfortunate us in Nigeria. Hopefully, a man with vision takes the seat this time or we'd all perish.

So if this Bitmex does go well, what are the chances that we in different locations can gain access to something all the way to the other side?

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Banks will give in to this as they will realize they'll become obsolete in a few years from now. Crypto is gradually eating the traditional financial system.

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