The cryptocurrency space is no longer the Wild West of finance. Less than two years ago, institutions were reluctant to enter, mainly because many projects were in the proof-of-concept stage, while the broader perception of crypto was that it was primarily used for illicit transactions.
And while the industry has managed to refute much of the above, there is still a lot of fraud going on in the cryptocurrency space. This is not exclusive, of course, crooks are everywhere and no market segment is secure.
However, the fact that most blockchains involve some sort of cryptography and that transactions are, at the very least, pseudonyms makes the crypto industry a very desirable target. Not only that – there is still considerable risk when it comes to protocol design, and we’ve seen a lot of hacks happen in the last couple of months alone.
This is where Banxa comes in with a solution that aims to bypass fraud attempts and provide a secure environment for investors and traders.
Connecting the worlds
First of all, it should be noted that Banxa is an Australian payment services company that aims to provide a reliable and secure bridge between the worlds of traditional finance and the emerging field of the decentralized economy.
It was founded in 2014 and seeks to offer its clients, which include providers of wallets, exchanges and other types of crypto-related businesses, a fiat-to-crypto gateway solution.
Banxa places great importance on security and the prevention of failed transactions. A failed transaction is a transaction initiated but not completed. This can happen for different reasons: the user may decide to cancel it, they may not have enough funds for the charges, the payment method itself may not be supported.
Either way, another thing to consider is that there are also fraudulent transactions – these are initiated by fraudulent means. These may be transactions made with a stolen card or through duplicity, deception, etc.
A large number of fraudulent or failed transactions can negatively impact the industry in several ways, including, but not limited to:
- Reduced conversions
- Reputation damage with partners and customers
- Chargeback costs
The company’s goal is to provide regulated and compliance-driven payments for businesses that deal with digital assets, including cryptocurrency exchanges, markets, DeFi protocols, and more.
The company implements a rigorous Know Your Customer (KYC) system that everyone must complete to access the highest limit for trading on the platform. This is a process that requires users to send their phone number, home address, government-issued ID, as well as a selfie with said ID and other credentials. verification.
Additionally, users must go through two-factor authentication (2FA) to ensure that third parties will have a harder time accessing their funds. They would also be required to enter a PIN code which is sent to the phone number associated with the account for added security.
To go further, Banxa is one of the first payment systems on the stock exchange to become a listed company. It is currently listed and traded on the stock exchange.
The company has also received regulatory approval in some countries such as UK, US, Philippines, Australia, Amsterdam, Lithuania, Netherlands, etc.
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