A New Cryptobank in Puerto Rico Starts Operations

The institution that seeks to attract new investors will operate legally in Puerto Rico, whilst its transactions will be supervised by local authorities

The San Juan Mercantile Bank & Trust International Corp (SJMBT), which will be engaged in the cryptoactive trade, started its cryptocurrency purchase and sale banking operations, according to what the company announced in a press release published on April 2nd.

Recently, the new corporation reported that it received, last month, the legal operation license from the financial authority of that country. In this way, the cryptobank will operate legally in the Puerto Rican territory and its services and transactions will be regulated by local authorities.

SJMBT has already accepted its first deposit of a client. With the receipt of that first deposit, the bank is already officially open to the public, and with the cryptoactive operations it offers, its institutional clients will have a complete package of services for their commercial needs.

Designed for Investors

The exchange, based on membership for digital asset traders, is looking to expand the reach of its operations by attracting institutional investors.

In the press release, the Chairman and Director of operations of SJMBT, Nick Varelakis, said that starting banking activities in that entity is a significant milestone for the exchange of cryptoactives in the region.

“Institutional participants in the digital asset market now have access to an authorized, fully regulated and operational banking partner that provides a secure environment for the adjustment and settlement of digital asset operations”, he said.

In the first stage, neither the cryptocurrency nor the banking platform would work. However, the Mercantile Global Holdings website established that both platforms will offer electronic negotiation services and custody of fiat and cryptoactive funds.

Both operations must occur in accordance with anti-money laundering (AML) parameters and know your client (KYC) for greater user safety, preserve important information and avoid money laundering among other types of crimes.

The security measures that will be required for the successful process of the operations are detailed in a second press release published on March 12th.

So far no more details are known about the cryptoactives to be included in the cryptobank system or what other security measures will be implemented by this new institution and the cryptobolse for the storage and custody of cryptoactives.

About SJMX and SJMBT

San Juan Mercantile Exchange, Inc. (SJMX) and its banking affiliate, the San Juan Mercantile Bank & Trust International Corp. (SJMBT), are developing a professional-grade trading environment and integrated banking platform for trading digital assets. SJMX and SJMBT are subsidiaries of Mercantile Global Holdings, Inc. (MGH).

By bringing together an experienced team of exchange professionals, bankers, technologists, and legal and compliance personnel, “SJMX and SJMBT are bringing to the digital asset space what professional traders have come to expect from regulated exchanges and banks”, said the information. It adds that users can contact the company at info@sjmx.global.

This new financial institution joins the growing number of over-the-counter markets which seek to attract traditional investors to the crypto-ecosystem, adapting cryptocurrency platforms to traditional standards so that more and more users feel comfortable entering the world of cryptography.

According to the official explanation, SJMBT offers fiat and digital asset custody and settlement services, and it is expected to be integrated with the trading platforms offered by its affiliate, the San Juan Mercantile Exchange (SJMX).  Together, SJMX and SJMBT will provide an integrated end-to-end solution for institutional customers seeking a familiar, efficient and secure way to trade digital currencies.

By María Victoria Rodríguez

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