Crypto Secrets Revealed! 🤫

BeInCrypto, with a touch of audacious curiosity, 🧐 had the distinct honor of engaging in conversation with Mr. Ilya Volkov, CEO and co-founder of YouHodler. A company nestled in the financial havens of Switzerland and the EU, YouHodler has, with some fanfare, garnered attention for its crypto lending, borrowing, and yield services. All of which are, naturally, intended for those ambitious souls seeking to multiply their digital assets through strategies of varying degrees of complexity.

During our symposium in Lugano—a place where finance and technology meet, much like a forced marriage arranged by ambitious parents 🙄—Mr. Volkov regaled us with his philosophy on constructing a lean, self-sustaining company in the crypto wilderness. He also shared his musings on the future of blockchain and crypto’s inevitable, if slightly awkward, integration into traditional financial systems. From the Herculean task of melding decentralized finance (DeFi) with the rather rigid structures of legacy banking, to the bold strides YouHodler is taking with cutting-edge technologies, this interview promises a glimpse into the mind of a leader who is, if nothing else, undeniably dynamic.

Mr. Ilya Volkov on Building YouHodler Without External Funding: How Personal Values and Beliefs Shaped the Journey (and Possibly His Hairstyle)

It was ever upon my mind, and indeed upon the minds of my esteemed partners, that a lean approach was not merely desirable, but essential. The benefit of such an approach, you see, is simplicity itself. For if one focuses on leanness, one is compelled to focus on efficiency.

Which invariably means that one must craft products that are not only useful, but welcomed by one’s customers, who, in turn, will express their approval with the delightful sound of money changing hands. 💰

When comparing this method to others, particularly those prevalent in the heady days of 2017–2018, the contrast is, shall we say, striking. Many a company, flush with the exuberance of youth, raised vast sums through Initial Coin Offerings (ICOs). While not all squandered these riches, a considerable number did so with an alacrity that was, in hindsight, quite breathtaking. Easy come, easy go, as they say.

Thus, funds were often diverted to questionable marketing schemes and the patronage of various influencers, whilst genuine product development languished.

And, dare I repeat, the crux of the matter lies in the fact that many companies awash in easy funds neglected the cultivation of their products, choosing instead to bask in self-congratulatory splendor. It is, perhaps, unsurprising that many of these ventures met with a rather abrupt end. 💥

A disclaimer, of course, is necessary. Not all such companies failed, but enough to render my point quite clear. Hence, the undeniable merit of steering one’s company with an unwavering focus on efficiency and the unassailable quality of one’s products.

There are, however, two potential drawbacks to such prudence. The first being that, had one the good fortune to amass tens of millions shortly after launch, one could immediately invest in all manner of endeavors, including the ever-important, and ever-costly, realm of marketing.

Indeed, it is a curious irony that digital channels now command prices exceeding those of traditional, offline avenues. Those astute companies who secured substantial funding early on enjoyed a considerable head start. I shall refrain from naming names, but I trust you can conjure examples of companies who, having raised fortunes through ICOs, now flourish. To them, I say, bravo! Thus, a swift and auspicious beginning is the first advantage of external support.

The second advantage of external support, particularly when allied with top-tier Venture Capitalists (VCs) rather than ICOs, is access to genuine expertise. Collaborating with highly professional, VC-focused entities grants one access to a wealth of additional knowledge. One might cite firms such as a16z, whose acumen is matched only by their focus on efficiency.

Thus, by aligning oneself with such professionals, one gains entry to a veritable repository of market expertise. But, alas, such alliances often come at the cost of one’s independence. 🕊️

After years of unrelenting toil, we still entertain the prospect of partnering with sagacious investors. Yet, we are, perhaps, no longer a mere startup, but something more…scaled up, if you will. We remain receptive to the overtures of strategic investors, provided they are of a certain caliber. Yet, the paramount benefit remains: our steadfast focus on the quality of our products and the satisfaction of our customers, who willingly part with their funds for genuine value, not mere hype or ephemeral tokens.

Promising Crypto Technologies and YouHodler’s Role in Shaping the Future of Blockchain (and Possibly World Peace)

Our space encompasses a multitude of dimensions and use cases, from investments and trading to payments and stores of value. Regarding investments and trading, we endeavor to list all coins and tokens of demonstrable worth, facilitating their purchase, sale, lending, borrowing, and exchange. Our market department diligently tracks market trends.

Naturally, we offer all the classics, and remain vigilant for novel opportunities. A recent example being the TRUMP coin. We observed market activity with keen interest and launched the Trump token within a mere 24 hours of its announcement. Our customers, ever eager to capitalize on market trends, expressed their gratitude.

While the long-term prospects of tokens such as TRUMP remain uncertain, they undeniably generate engagement. Strategically, we envision our platform hosting not only cryptocurrencies, but also traditional assets, facilitated through partnerships with established financial institutions.

We are, at our core, crypto native, yet we actively seek partnerships with traditional institutions. The Web3 Banking Symposium in Lugano serves as a testament to such collaborations. We shall continue to augment our trading and investment offerings with both crypto and traditional instruments. Our second strategic focus lies in payments.

We invest heavily in wallet and payment infrastructure for applications. Our platform enables users to open dedicated bank accounts in their own names, relying, of course, on our banking partners. Users can seamlessly link Visa and MasterCard cards, facilitating effortless top-ups and withdrawals.

We are nearing the launch of our own YouHodler-branded card, further streamlining the user experience. To this end, we have integrated a range of banking protocols into our platform, supporting a 360-degree approach to crypto payments.

Furthermore, we are investing in innovative features. We are proud to be among the first members of the Universal Money Address (UMA) network, built on Lightspark in Europe and Switzerland.

Lightspark, founded by luminaries from PayPal and Facebook, is led by David Marcos, PayPal’s former president and Meta’s ex-Top Manager, who brings to bear his extensive expertise in building payment solutions.

Remember the tale of Libra and Diem? Lessons were learned, and from those ashes arose Universal Money, or UMA. Similar to PayPal, yet elevated to the next level, UMA offers a simple, human-readable address akin to email, but linked to any form of currency—crypto or fiat. Users can send funds in any currency, and recipients will receive their preferred currency within seconds.

With our platform, users can utilize this address for crypto and fiat currencies, including Euros, Dollars, British pounds, and pesos. To send funds, one need only solicit the recipient’s address.

Let us say, for instance, that you send Euros. Should the recipient reside in the United States, they will receive USD, deposited directly into their bank account.

This system functions across multiple countries. We oversee Switzerland and the European Union, while our partners manage operations in Argentina, the Philippines, and Turkey.

When Euros are sent via our platform, they are instantly converted to Bitcoin, transferred via the Bitcoin Lightning Network, and then converted to the recipient’s local currency.

This process eliminates the need for SWIFT or other banking protocols, or even stablecoins, as Bitcoin serves as the payment rail.

Thanks to the Lightning Network, transactions are completed in milliseconds. The average transaction time is a mere three seconds.

We are currently conducting trials targeting communities of Filipinos working in Europe, who currently rely on expensive services such as Western Union or Wise.

We propose that they utilize our platform, benefiting from rapid transactions and minimal commissions. This exemplifies our dedication to pushing the boundaries of technology while prioritizing user value.

YouHodler CEO on Ripple and Cross Border Payments (A Retrospective Reflection)

Back in 2016 or 2017, I was quite taken with Ripple’s ambition to challenge SWIFT. But has Ripple succeeded after all these years?

I think not. Instead, we have stablecoins, Circle, and Tether, addressing the same issue. Even UMA now targets cross-border payments.

Returning to the question of our contribution, we actively participate in the development of the industry as a whole.

The market is vast. Rather than compete, it is better to collaborate. Hence, our efforts to unite diverse companies.

Three years ago, when I suggested connecting banks and crypto companies, I was deemed mad. But it is now happening. 🤝

Bridging the Gap Between Web3 Anonymity and Traditional Finance’s Regulatory Demands (A Delicate Dance)

There are two aspects to consider: anonymity versus KYC/AML, and self-custody.

Regarding KYC, for common folk, like ourselves, it poses no great difficulty.

With our extensive experience in KYC, we encounter no issues with ordinary users, provided the user interface is well-designed.

The challenge arises with those who seek to circumvent the system, whether through large-scale fraud or petty schemes such as card fraud.

However, when weighing the benefits of fraud protection against the complexities of KYC, it is clear that KYC is not an undue burden for the typical middle-class individual.

Again, we prioritize simplifying the UI/UX of our app. Of course, taxes also factor into KYC and AML considerations.

Individuals have always sought to optimize their tax burdens, legally or otherwise.

This is not unique to crypto. Cash remains the easiest means of evading scrutiny.

My point is that crypto is not a tool for tax evasion.

Anonymity is not inherently problematic, particularly with polished user interfaces.

Regarding self-custody, our analysis reveals two distinct groups of users: those who wish to manage their keys and those who prefer to delegate the task.

Similar to traditional banking, some users prefer to entrust their assets to a trustworthy service provider, while others prefer to manage their own assets using a noncustodial approach.

We seek to accommodate both groups.

We are integrating Web3 connectors and wallet connects, allowing users to link their hardware devices or MetaMask wallets to our platform for loans or currency conversions.

We are currently testing the connector, which promises to satisfy both those who prefer managed custody and those who insist on self-custody.

YouHodler’s Approach to Balancing Crypto Anonymity with Traditional Financial Regulations (A Tightrope Walk)

We strive to remain compliant with all regulations, adapting swiftly to new requirements.

As we speak, PwC is presenting on CARF (Crypto-Asset Reporting Framework) at the Web3 Banking Symposium, a new standard to be implemented in the EU in 2026.

We are already in the final stages of complying with MiCA and DORA, and now must contend with CARF.

Thus, our approach is not about finding a perfect balance, but about maintaining up-to-date systems.

Our headquarters are in Switzerland, and we hold authorizations and licenses throughout the EU.

We are fully committed to MiCA compliance and have invested heavily in this effort. Our European team is growing, and we have an authorization in Argentina to serve Latin American markets.

Even with frameworks like MiCA, we must follow up with different regions, which is no easy task.

How Increasing Blockchain Regulations are Shaping YouHodler’s Future and the Crypto Industry (A Regulatory Maze)

At the Symposium, I presented charts illustrating the complexity and importance of regulations for the economy, noting that countries are vying for position.

In the US, we saw a restrictive environment a year ago, but the Trump administration is trying to deregulate the industry.

Meanwhile, the EU is taking a heavy-handed approach with MiCA.

Different regions are seeking to regulate crypto, either to increase economic value or to protect end users.

Switzerland seeks to strike a balance, and I hope it will continue to do so.

Blockchain may not return to the Wild West days, but that is the natural evolution of any industry.

Can you name a financial product without regulation? Credit cards, for example, were initially unregulated, leading to widespread fraud.

Regulation reduced fraud, yet we still use cards today.

For regular users, this is fine as long as the UI is good, and AI is helping to simplify interfaces.

Digital identities will eliminate the need to resubmit KYC on every platform.

Yes, it will not be the Wild West, but it will be quite fine for most users, and companies will focus on UI simplicity.

Mr. Ilya Volkov Discusses How Crypto is Transforming Traditional Finance (TradFi) and What the Future Holds (A Crystal Ball Gazing Session)

Traditional banks are now actively working in the crypto space. At last year’s Symposium, a Swiss Cantonal Bank, with 200 years of history, introduced crypto.

They serve both wealthy traditional customers and young, adventurous customers.

Wealthy customers have invested in everything, including crypto, and the bank feared losing them if it did not offer crypto.

The bank also feared that young customers would not join if it did not offer crypto.

This explains why traditional institutions are joining the crypto space.

While this may increase competition for companies like us, it also creates opportunities for partnerships. FinTech companies are always ahead, exploring new horizons, and can create innovations that are later adopted by traditional institutions.

Blockchain may not be the Wild Wild West, but there will always be something new as companies like us push the boundaries. It is a constant evolution.

2025-04-12 00:57