Cannabis, Cryptocurrency and Compliance: One Man’s Quest to Service Unbanked Firms

Cannabis, Cryptocurrency and Compliance: One Man's Quest to Support Unbanked Firms

"I will tell you now that JP Morgan Chase doesn't do that -- they freeze your capital," reveals Huerta. "They will have a JP Morgan coin, but they're purging money service businesses and other accounts and freezing their capital. I'm telling you that from first hand experience. If JPMorgan Chase is listening, I'd like my $100,000 back -- they're holding it hostage." The banking giant had been holding onto Huerta's capital for around a week in the time of recording the podcast. "Maybe I will get it back. Maybe I will not," he muses. "But JPMorgan Chase -- shame on you. We are a compliant and valid company and they're holding our money."
As the owner of Crypto Space, a bodily bitcoin exchange in Los Angeles' San Pedro area, Huerta knows more than most about the challenges of conducting a cryptocurrency company whilst maintaining banking accessibility and compliance. Within an broad interview, the Crypto Space proprietor has disclosed the realities of straddling the line that divides centralized and decentralized finance, and the underhand tactics big banks deploy to conquer crypto startups. Ernesto Huerta faces a twin challenge upon awakening each morningkeeping his own company afloat, while doing the exact same for his customers. It's not that business is bad -- in actuality, Crypto Space is flourishing. Rather, the realities of operating from the cryptocurrency sector mean Huerta is always in danger of getting the carpet pulled from under his feet by the banks. His customers, lots of whom operate from the marijuana business, face the exact same challenge. Crypto Space is thriving because of a collection of crypto ATMs installed in multiple locations, and Huerta has seen a market in helping businesses specializing in medical marijuana and money transmission -- all performed legally and by the publication.

How Cryptocurrency Solves Real World Issues

Perhaps you have experienced banking issues while working a cryptocurrency enterprise? You will find a cashier's test [from the bank] in 10 business days. So they don't tell you why. And they say the decision is final, and they steal your money. And they play it for god knows how long till they decide they're going to offer it to you personally. The bodily lounge forms a laid back spot for like-minded souls to hang out, drink beer and talk about bitcoin and exchange cryptocurrencies such as BCH and BTC. But there's also considerable business to be done. Besides the legal bud business, notes podcast host Matt Aaron,"that there are many businesses that don't have bank account. Ernesto is building trust in a market that needs trusts since it is confusing, and there's a great deal of scams, but he is thriving because he is solving the problem for individuals who have trouble with cash."
Crypto Space

Banks Are the Biggest Criminals

Crypto Space
Have to compute your bitcoin holdings? Check our tools department. Also see: Japan Approves two New Crypto Exchanges -- 140 More Curious "There's a good deal of organizations, such as real estate businesses, that understand crypto is not there, they would like to take payment in crypto and hold it as an advantage but they don't even understand how to secure their resources," clarifies Huerta. "Say they buy a million bucks worth of crypto, just how can they fasten it? We help them put up their security, make them a pen tester to permeate their systems and ensure that their enterprise and their home networks are secure, and will help them set up their Ledgers, their multi-sig wallets etcetera." Images courtesy of Shutterstock.
23 days later uttering those words on the People of Bitcoin Podcast, Ernesto Huerta eventually got his money back from JPMorgan Chase.
Because cannabis is not legal , but is legal in the country of California, Huerta has found himself helping lots of bud businesses that have been frozen from their financial system. "You know, they need to get products, they have to get seeds, they have to buy fertilizer gear, so that they will have to spend [money] and there's no outlet for these," he finds, before venturing out a few of the crypto-based alternatives out there. "One option about compliantly onboarding vital sums of cash," outlines Huerta,"is through the smart ATM system with full biometric KYC for compliance; all that the government needs or the state needs about doing a legal transaction. So we would use a medical marijuana dispensary, and possibly they could take bitcoin in their dispensary and we'd put up them and show them the way to store that and then they could put an ATM in the dispensary." It's Not Only dispensaries with a need to get Crypto Space's services, such as Huerta notes: Not everyone who walks through the doors of Crypto Space can grow to be a customer however. "Unfortunately, we have to turn down a lot of business because of compliance which we take very seriously. If someone comes in and says'Hey, I have this bag full of cash and I'd love to buy some bitcoin,' I'm like,'Sure, let's see your ID, I must source the funds' and then they're like'Well, maybe not.' We have to be very, very cautious. But should they really do pass compliance, and everything's good, we could settle instantly." On this week's People of Bitcoin podcast, Huerta informs host Matt Aaron regarding the struggles he faces from the daily running of Crypto Space, however, explains why he'd not want to do anything else. The brick and mortar assumptions, Huerta recounts,"is more like a crypto bank, a location where you are able to acquire immediate payoff and in which we solve people's issues. They could buy large amounts of crypto and have zero slippage and instantaneous transactions." It's long gone.

'If JP Morgan Chase Is Discussing I'd Like My $100,000 Back'

When you register as a cash business, it is close to impossible to keep or receive a bank account. So they force you to take care of cash, kind of like cannabis businesses. There's a great deal of dirty money flowing round by the government or the banks limiting crypto businesses," claims Huerta. "It's like Prohibition in the 20s with, such as, Al Capone and what. They criminalize banks, they create such monsters, they create such underground networks. Because the minute that you criminalize something, it brings out this whole other problem, right?" He's scathing of U.S. banking and also the simple fact that"They can opt to do business or never do business with whomever they want. I understand this from heaps of letters that my customers have gotten so, or I have gotten, that what they do is freeze your funds to hold them for 10 business days, and you get a letter saying,'We are not telling you why we are closing your bank accounts, the decision is final'." Huerta proceeds: