Can a Business Invest in Cryptocurrency? The Answer is Yes!
If you have clicked on this article, the odds are your business is ready to explore cryptocurrency, but doesn't know how; or what the best options are. The good news is that you're not alone.
Across Europe, companies large and small are starting to see the value in adding digital assets to their portfolios, and there are a number of reasons for this. This could be due to a desire to keep up with technology, the impressive returns on offer, or diversifying a company's balance sheet. Either way, the benefits offered have created a large demand for crypto business solutions.
In this article, we'll discuss:
- How adopting cryptocurrency can be a smart move for your business
- Provide clarity on whether a business can invest in cryptocurrency
- Look at ICONOMI's business solution.
Let’s dive right in!
Why Would a Business Want to Invest in Cryptocurrency?
In 2024, many businesses are starting to turn towards cryptocurrencies, not just as a speculative asset, but as a strategic component of their financial operations.
This interest is influenced by crypto's several intrinsic qualities, which not only can bring about improvements to internal operations, but also a competitive edge when it comes to B2B and B2C payments.
What is cryptocurrency?
Cryptocurrencies are digital currencies that operate independently of central banks and use advanced cryptographic techniques to secure transactions, control the creation of additional units, and verify the transfer of assets. They are usually powered by blockchain technology—a decentralised ledger that records all transactions across a network of computers called nodes.
The two largest cryptocurrencies by market cap are Bitcoin and Ethereum.
What is the appeal for businesses?
Part of the appeal of these cryptocurrencies lies in their ability to provide secure, transparent, and fast financial transactions, which makes them a compelling alternative to traditional financial systems. Furthermore, their decentralised nature not only enhances security but also democratises financial operations, potentially reducing costs and barriers to entry in global markets.
Cryptocurrencies can also act as a hedge against inflation, as they are typically not directly tied to the economic policies of any single country, and also have the potential to bring about an impressive return on investment (ROI).
Other enticing benefits of businesses buying or including crypto in their operations include facilitating access to new customer segments, allowing for innovation and a competitive edge, enhanced transparency, and saving time; in the event that crypto becomes a widely adopted asset class in the future.
Can a Business Invest in Cryptocurrency?
The answer is yes, but it depends on where your business is located, and whether federal and local regulation permits it.
For example, if you are a European business that wants to buy digital assets, then you can do so as long as the platform (or broker) you use is licensed in line with MiCAR (Markets in Crypto Assets Regulation); which could require them to have EMI, DASP or CASP licenses.
On the other hand, if you are a UK business that wants to gain exposure to crypto, then you can do so as long as you go through an FCA-regulated crypto platform or broker.
It just so happens that UK investors are in luck, as ICONOMI is one of the few FCA-regulated crypto businesses in the country to offer a regulated and streamlined crypto business account solution.
ICONOMI — A Crypto Solution for European Businesses
Founded in 2016, ICONOMI is recognised as one of the pioneers of crypto strategies, and provides a sophisticated crypto investing platform for both individuals and businesses alike.Given how ICONOMI meets the rigorous standards set by the Financial Conduct Authority (FCA), buying and selling cryptocurrencies on the platform is highly secure and straightforward, making it an ideal place for businesses looking to gain exposure to crypto.
What makes ICONOMI an excellent crypto business solution?
For businesses across Europe looking to onboard crypto onto their balance sheets, ICONOMI's business account offers several compelling features:
User-friendly interface: One of the most compelling aspects of ICONOMI's platform is how user-friendly it is. The platform is incredibly intuitive, making it easy for businesses of all sizes to directly buy and sell crypto, or invest in tried-and-test crypto strategies; all without needing specialised knowledge.
Diverse investment options: The platform caters for over 150 cryptocurrencies and 200+ crypto strategies, meaning there are ample opportunities for businesses to diversify their portfolios; and enhance potential returns.
Advanced security measures: ICONOMI’s commitment to security is evident in its use of multi-signature wallets and a combination of hot and cold storage solutions, minimising risks associated with cyber threats.
Educational resources and support: The platform not only educates its users about the nuances of crypto investments but also offers continuous support to ensure they are well-equipped to make informed decisions.
Conclusion
In conclusion, yes, if you are a European (UK) business that wants to invest in cryptocurrency, you can indeed!
With regulated platforms like ICONOMI facilitating this, now is the perfect moment for businesses to explore what crypto can do for them. Whether it's boosting your operational efficiency, streamlining transactions, or simply keeping your company at the cutting edge, cryptocurrency is a compelling asset class that is worth having a closer look at.
So, why not take the leap and see how your business can benefit from this exciting new asset class? Sign up to ICONOMI today, and one of our representatives will reach out to make the process quick and straightforward.
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