The Hong Kong based company plans to send out 100,000 Visa cards by December. The card will initially be issued in Singapore, and eventually worldwide
Crypto.com, formerly Monaco, publicly introduces Visa debit cards that lets card holders convert cryptocurrency straight into fiat money for cash out. $26.7 million was raised during their ICO in May and June 2017.
According to Crypto.com, their metal Visa card will not have an annual fee, the users can spend multiple currencies including cryptocurrencies anywhere, and one can also buy and sell crypto through their app. Those who desire to apply for a card will undergo the KYC process. The card itself will be linked to Crypto.com’s online wallets.
After the debit card product, Crypto.com will broaden the scope of their services. The company will be submitting an application in both Hong Kong and Singapore to qualify as a cryptocurrency-backed money lending firm. Their take on the credit/debit cards will divert from the usual business model. Instead of tying the loan amount to the card holder's credit limit, without minding whether they can afford to pay the loan or the late fees associated with it, the borrower will be allowed from 40 to 60 percent loan relative to their cryptocurrency collateral. The collateral is in the form of Bitcoin or MCO (Crypto.com’s coin).
With this business model, Crypto.com card holders will not face the problem of crypto market volatility. The risks related to the Bitcoin and MCO collateral will be shouldered by the company. The company will take a part of the processing and transaction fee as income.
The state of crypto cards remained vague for several months.