Goobit CEO: "Crypto industry on course to grow exponentially"
Growth in the crypto industry is often described in terms such as AML, WEB3, NFT & OTC. Goobit Group is well prepared to establish itself in these growth areas. Goobit's CEO Christian Ander gives some answers on where the company stands today and the direction going forward.
Most people who actively follow crypto-related news have probably noticed that the Bitcoin price fell in the last year and the record valuations in digital art in the form of so-called NFTs have declined rapidly in the last one to two years. At the same time, the number of different crypto projects in both areas has continued to grow globally, which means that transactions within the crypto world are growing, which in turn benefits the already established players. The industry is also growing fast right now in eSports and gaming where they offer virtual products from, for example, McLaren formula cars or in the upcoming FIFA world cup variant that takes place in the Roblox virtual environment.
These megatrends are noticed by the largest global IT companies such as Meta/Facebook, Microsoft, and Accenture, which continue to invest in Metaverse and virtual worlds, which are often referred to as WEB 3.0. The fact that even large traditional banks such as HSBC and one of the world's oldest banks, Bank of New York Mellon, have now launched services in this area to meet demand, raises the question, what is happening within Swedish banks?
Christian Ander, what do you think is the reason that there is such uncertainty for crypto within Swedish banking and finance?
Bitcoin and crypto challenge the establishment both in theory and practice at the same time. But for us, as an established player since many years, the concern appears to be unwarranted. Take for example, AML, traceability, transparency, and compliance. It is as important to us as it is to everyone else, and the possibilities to offer just that in the global and transparent world of bitcoin and other public crypto networks are more sophisticated than the methods used in the established financial systems. Therefore, there is a wait-and-see attitude towards new technology, just as the music industry did not adapt to the Internet in the early days, which cost the industry enormously and gave rise to new players such as Spotify.
Are there conditions for the Swedish financial industry to start using crypto and blockchain?
Absolutely! The European MiCA regulation provides a regulatory framework for exchanges, banks, and crypto companies to work in. Goobit AML SaaS solution for cryptocurrencies and digital assets is prepared for this framework so that banks and financial companies can already prepare for the rollout of MiCA which is expected to take place around 2024.
Do you and the company believe that the crypto industry will grow in the future due to the regulatory harmonization in the EU?
Yes. Already today, we have public billion-dollar companies that use our services to live up to regulations and sanctions that exist to handle crypto-related transactions that the Nordic financial industry does not handle today.
But what does that mean for Goobit?
The need to comply with regulations in crypto will increase significantly. WEB3.0 and the use of tokens as NTFs is increasing. Big players are entering our industry and it's not just finance we're talking about here, but also areas such as computer games, music rights, ticket sales, government, law firms and the judiciary. To meet the upcoming challenges, we have created a new AML Desk (Anti Money Laundering). It is a service offering for digital assets that is meeting a lot of interest. It became a service almost before it was a finished service, so to speak. It has grown organically, and we have already processed just over 12,000 requests. For the AML-Desk product, there is a real-time API which is offered as a SaaS service where consideration has been given to the new segments that need to use it. We have just now started it together with Azerion.
And the last abbreviation, OTC?
This means that we are expanding with a BTCX OTC service (Over the Counter) as the company has seen increased interest from that customer group. The service is aimed at well-capitalized customers who want an experienced operator who provides reliable, personal service and who can carry out a deal without causing a price impact at the time of the transaction.
But the bitcoin price is in a so-called crypto winter and inflation and electricity prices are rising. Does Goobit still thinks that growth awaits?
An absolute no-brainer. After 10 years in the industry, we have an experience that is difficult to match. We have been through three price dumps of over 80% in the past and we have also dealt with the uncertainty that Swedish banks have had for a long time. Not many companies survive such storms. Furthermore, it is in tough times that the best innovation happens, and everyone must try new strategies to find alternative solutions. It is now the first major Swedish bank start its crypto initiatives.
In summary, the potential within the industry appears to be growing when large foreign IT companies and banks takes part of the development. Now Goobit invites the Swedish financial industry to participate in a regulatory safe way with AML and OTC solutions to take part in the coming growth.