Launch HN: Multis (YC S19): online business bank account for cryptocurrency • Hacker News Board

Re: Launch HN: Multis (YC S19): online business bank account for cryptocurrency

#21

Post by tyre » Thu, Oct 17, 2019, 8:00 PM UTC

tsahaghian wrote: post #15

tyre wrote: post #11

Earlier quoted context omitted.

Having worked at ZenPayroll in the early days, I can say with confidence that this is not true. Payroll is not handled by accounting software and it sure as hell is not uploading amounts and account numbers. As for paying people in crypto, we considered it (I was the engineer working on it) and then we decided against it because it’s a terrible idea. 1. Crypto transactions aren’t reversible so reversing fraud is impo…

1. Was fraud a big issue at ZenPayroll? I would assume this to be an issue for fortune 500 companies, not smbs 2. We're helping crypto companies for now - they get it. Hopefully non-crypto people will get it too as crypto becomes mainstream :) 3. e-merchants like Rakuten started accepting crypto. Amazon could follow. Consumer apps offering higher interest rates than traditional banking could also be compelling 4. You…

Fraud isn't something you can worry about after the fact. There are strict regulations around anti–money laundering and counter-terrorism that are less about de-frauding an SMB then spinning up fake businesses and using payroll as a conduit. The challenge with blockchain payments in payroll is anonymity and irreversibility (two of its significant differentiators.)

At that point, what are the benefits? Transaction speed is one, but you only really get that if the business pays in crypto (otherwise you still need to wait for the ACH payment from them or float the money (don't float the money.))

Re: Launch HN: Multis (YC S19): online business bank account for cryptocurrency

#22

Post by tsahaghian » Thu, Oct 17, 2019, 8:33 PM UTC

tyre wrote: post #21

tsahaghian wrote: post #15

Earlier quoted context omitted.

1. Was fraud a big issue at ZenPayroll? I would assume this to be an issue for fortune 500 companies, not smbs 2. We're helping crypto companies for now - they get it. Hopefully non-crypto people will get it too as crypto becomes mainstream :) 3. e-merchants like Rakuten started accepting crypto. Amazon could follow. Consumer apps offering higher interest rates than traditional banking could also be compelling 4. You…

Fraud isn't something you can worry about after the fact. There are strict regulations around anti–money laundering and counter-terrorism that are less about de-frauding an SMB then spinning up fake businesses and using payroll as a conduit. The challenge with blockchain payments in payroll is anonymity and irreversibility (two of its significant differentiators.) At that point, what are the benefits? Transaction spe…

- Is crypto really different from cash for this? Plus anonymity seems relative now as agencies like Tracfin can track back addresses.

- Our users generate revenues in crypto. Paying employees with it is just convenient, faster, and cheaper when part of their staff is abroad.

Re: Launch HN: Multis (YC S19): online business bank account for cryptocurrency

#23

Post by dmitrygr » Thu, Oct 17, 2019, 11:37 PM UTC

> Cryptocurrencies - and particularly stablecoins - are a reliable, fast and cost-efficient medium of exchange

May I respectfully ask for a citation on this statement's three claims please?

Re: Launch HN: Multis (YC S19): online business bank account for cryptocurrency

#24

Post by novalis78 » Fri, Oct 18, 2019, 2:00 AM UTC

Sounds like a very good idea. As a depository institution are you looking to acquire a banking license (like varo did)?

Re: Launch HN: Multis (YC S19): online business bank account for cryptocurrency

#25

Post by tsahaghian » Fri, Oct 18, 2019, 6:19 AM UTC

novalis78 wrote: post #24

Sounds like a very good idea. As a depository institution are you looking to acquire a banking license (like varo did)?

Thanks! For now, we will partner with regulated bank infrastructure providers - they have the licence. Just like neopbank players have been doing with Synapsefi in the US or Solarisbank in the EU.

Re: Launch HN: Multis (YC S19): online business bank account for cryptocurrency

#26

Post by stzup7 » Fri, Oct 18, 2019, 10:54 AM UTC

You need to be very careful when using the term "bank". It's a very sensitive and regulated domain and depending on the countries you're targeting, you may have to remove it entirely until you have the appropriate licences to use it.

Re: Launch HN: Multis (YC S19): online business bank account for cryptocurrency

#27

Post by tsahaghian » Fri, Oct 18, 2019, 4:30 PM UTC

stzup7 wrote: post #26

You need to be very careful when using the term "bank". It's a very sensitive and regulated domain and depending on the countries you're targeting, you may have to remove it entirely until you have the appropriate licences to use it.

You're absolutely right! We're still iterating on that one. "Banking account for crypto and fiat" rather than "cryptobank" seems to be the right way to mitigate risk for now (e.g. Mercury "banking built for startups"), but we certainly want to be extra cautious.