Crypto report spoke with the economist Enrique Palacios, who is COO of the Spanish cryptocurrency custody company “Onyze”, to learn about his vision of the crypto ecosystem in Spain and the new projects offered by this Spanish startup.
Palacios is an economist with extensive experience within the banking and fintech sector.
1) What is Onyze and what services does it offer?
Onyze is a custodian of digital assets that aims to democratize access to cryptocurrencies in a safe, simple and regulated way.
We offer through the Service Caas -Custody as a service – and the Onyze Pro service, the infrastructure for the creation of wallets, safekeeping of private keys in a cold vault and exchange service (purchase and sale and transfers between wallets).
We also include a regulatory service for both knowledge of the client and the prevention of money laundering adapted to the crypto world.
CaaS is a service through which third parties will be able to create products for the crypto market.
2) What are your potential customers?
Through the Caas Service we address Neobanks, Fintech companies and crypto platforms that want to offer cryptocurrencies to their users.
Through the Onyze Pro Service, however, the objective is a corporate and institutional financial client.
We speak from Banks and their vertical of Private Banking, Investment Managers and Funds, Family Offices, etc. to companies that want to optimize a part of their treasury and seek exposure to Bitcoin or Ethereum.
3) How do you consider the acceptance of Onyze in the Spanish community?
We are pioneers in Spain and since our creation in 2019, we have been part of the crypto community in our country, from its origins weaving very strong ties with the leading innovation hub in Spain, Criptoplaza, as well as with financial institutions such as our partner. , the Spanish Neo Bank Bnext, in addition to building collaboration bridges between the regulator and the supervisor in Spain (Bank of Spain and the CNMV).
4) How do you consider the adoption of cryptocurrencies and blockchain technology in Spain?
We see a very positive evolution in the last six months both in new projects that are emerging in the sector, and in a growing appetite for the adoption of cryptocurrencies among companies and individuals.
We are very involved in the sector in disseminating blockchain technology and its most powerful use case such as cryptocurrencies.
We see that the supervisor is making efforts to understand them and try to protect the investor in order to adapt as quickly as possible to the European regulation that is coming –Mica and AML5- and to avoid the occurrence of adoption divergences between the EU member countries.
5) Does this new bank have the capacity to safeguard cryptocurrencies for large multinational companies and emerging start-ups?
Indeed, as I have commented through our services, we cover that range.
From B2B2C to B2B with top-level financial companies.
6) How does the storage of cryptocurrencies work?
Our service includes the storage of users' private keys in a cold vault, offline and with a bank security level.
We do it by providing the necessary infrastructure and through API, integrating ourselves into the environment of our clients.
We not only provide security guarantees but also regulatory ones, as we anticipate complying with the transposition of the 5th money laundering directive of which we will be obligated subjects.
7) What are the new projects that Onyze has for this year?
Continue to grow and strengthen our position in Spain.
For this, we have submitted a candidacy in the first promotion of the Spanish regulatory Sandbox and we will collaborate in several projects together with financial entities in our country.
At Onyze we have always advocated offering our clients a regulated and safe service
Recently the Bank of Spain and the National Securities Market Commission (CNMV) published a statement, where they warn of the risks of investing in cryptocurrencies.
The statement argues the risk based on three points: 1) volatility, 2) that it is not properly a means of payment and 3) and its lack of regulation.
Palacios commented in this regard that from Onyze, "we have always advocated offering our clients a regulated and safe service, so that in this way there is protection for the investor, and avoid any type of fraudulent practice in the absence of regulation".
Palacios expressed during an interview reviewed by Cointelegraph on February 10, 2021.
On the other hand, he highlighted that from "Onyze solutions are already being applied and we are working very hard to mitigate some of the risks that are discussed in the statement, such as custody risk."
In this sense, Palacios recalled that they perform cold custody of private keys and that they use tools "In accordance with the challenges that the new technology brings", to be able to carry out anti-fraud procedures and for the issue of money laundering.
“With the arrival of a specific regulation for this sector -MICA- as well as the transposition of the 5th money laundering directive (AML5), both in the coming months, will undoubtedly help to dissipate part of the risks attributed to the sector of cryptocurrencies, ”Palacios remarked during the Cointelegraph interview.