October 13, 2015
SnapSwap International S.A. became the first company to receive a bitLicense in Europe, allowing it to offer digital payments, remittances, and currency exchange services in the European Union. The Minister of Finance of the Grand Duchy of Luxembourg issued its first bitLicense to SnapSwap, a company founded three years ago in the US by CEO Denis Kiselev. The bitLicense allows SnapSwap to utilize cryptographic technologies, crypto-currencies and Internet protocols, such as blockchain and open ledger consensus.
Working out of their recently established international headquarters in Luxembourg, SnapSwap will operate as a payment institution pursuant to the Law of 10 November 2009 on payment services, on the activity of electronic money institution and settlement finality in payment and securities settlement systems.
In a press release on Monday (October 12, 2015), SnapSwap unveiled the next steps in their operations for the European Union.
Our mission is to build innovative financial products that allow consumers and businesses to participate in the global economy by bringing down barriers such as cost, complexity, and processing delays. We are employing the cutting-edge technologies of the emerging Internet of Value to foster financial inclusion and efficiency, said Denis Kiselev, SnapSwap founder and CEO.
We believe this is the first step of the creation of a crypto protocols ecosystem that will develop within an established structure of financial regulation and supervision, Kiselev added.
Under the regulatory supervision of the Commission de Surveillance du Secteur Financier (CSSF), starting in January 2016 SnapSwap will start its operations for the European Union out of Luxembourg. The announcement of the bitLicense in Europe came within less than a month of the company disclosing the termination of SnapSwap US.
On September 25, 2015 SnapSwap US discontinued onboarding new customers and accepting USD deposits from existing customers. In a blog post SnapSwap Discontinues Ripple Gateway Service in the U.S. to Focus on European Markets, the company expressed their gratitude to all Ripple enthusiasts who have used our service during these years and vaguely explained the termination of service, stating the Ripple Network’s current focus for growth is to drive adoption by banks and financial institutions rather than by consumers. Therefore, we have decided to discontinue our SnapSwap consumer gateway service in the U.S. The company also instructed customers to withdraw their USD balances at their earliest convenience, preferably before October 25, 2015.
Despite leveraging the benefits of virtual currencies that promise to to streamline and enhance outdated payment processes, there are still many skeptics and regulators that fuel the lingering doubt associated with crypto-currencies. However, growing global demand for fast and cost efficient payment transactions is the leading factor driving interested parties to alternative currencies. Over the past few years, SnapSwap has engaged in the development of advanced technologies supporting cryptocurrencies and continues to be a beacon during the global expansion process.
SnapSwap’s team of engineers and financial specialists builds products and services based on innovative payment and settlement technologies. Founded by CEO Denis Kiselev in 2012 in the US, the company established international headquarters in Luxembourg in 2015. Establishing a regulated payment institution in a major hub of international finance and communication technology allows SnapSwap to implement the highest standards of compliance and transparency. Its mission is to connect people and businesses by making payment innovations easily accessible worldwide.