Bridging cryptocurrency and traditional finance businesses: the case of SpectroCoin-Pervesk

Abstract

Vytautas, the chief executive officer and co-founder of SpectroCoin (cryptocurrency exchange) and Pervesk (licensed payment institution) was at a crossroads. The technological interconnectedness of these two firms enabled the use of cryptocurrencies via traditional payment methods, thereby opening global business opportunities in the newly emerging industry. However, the Central Bank issued a warning that regulated businesses, including licensed payment institutions such as Pervesk, should disassociate with cryptocurrencies. Must Vytautas follow the newly issued opinion of the regulator and drop an extremely lucrative idea, which made these two firms become pioneers in the world? Or was there a solution that would allow compliance with the regulations without losing the profits from the innovative business setting? The case fosters discussions on (non)compliance with the regulatory and normative institutional pressures when developing innovative business. The case additionally allows exploring the multifaceted environment that unfolded in Lithuania—the recently emerged European Union’s FinTech hub.