This article was written based off a news tip from a reader
Swan has been making the best of the Bitcoin bear market. There are 3 imperatives of a bear market which are fighting, stacking and building. Swan has mostly been fighting, but now they are looking at doing some real building in order to start stacking again. On Wednesday, Yan Pritzker, CTO of Swan, tweeted about the companies plans to partner with hardware wallet manufacturer Ledger in order to develop privacy tools that are also compliant with the new FINCEN regulations.
FINCEN is an agency that is is developing regulations seeking to inhibit the growth and development of Bitcoin in North America. Despite none of their members getting elected, they still have an enormous reach in regulating the cryptocurrency industry in the US. Unfortunately, Dennis Porter has been unable to prevent them from creating disruptive rules.
The plan is for Ledger to offer FINCEN compliant hardware wallets to Swan customers, while also working with the 600 developers currently working at Swan to create FINCEN specific privacy tools. The privacy strategy seeks to obfuscate balances as well as transaction history, while also allowing the IRS to view your transactions. All transaction data using the special Ledger devices will kept in a server room in Switzerland, but then reported to various tax agencies around the world to still be FINCEN compliant. This brings a wonderful blend of personal privacy, but also compliance.
Despite Swan saying that they only want to work with "Bitcoin only" companies, it would seem the policy is changing with Ledger, who supports a variety of coins on their products. The company appears to be shifting gears as far as their standards seeing as it has been difficult for them to raise money in the bear market, before they plan to IPO. Rumors are that Ripple is eyeing the new partnership and may have a desire in investing in Swan, despite many individuals working at the company complaining about shitcoiners for years.
It is widely known that the companies Swan has been using for their backend to offer Bitcoin to their customers support other coins, but also some the sales products they use do as well. Their CRM has listed its own token in recent months. A growing standard for the industry is understanding that your 3rd party products will not work without a related token, so despite Swan attempting to be Bitcoin only, it is truly impossible for them.