Cryptocurrencies continue to be the center of confusion and controversy, with the recent international news that India and Pakistan want all banks to cut their ties to the alternative form of currency. While that news has caused some to question the legitimacy of the space, for others it presents opportunity.
Further, startups in the space need to be careful about enhanced illegality surrounding crypto assets. I recently discussed that with MoxyOne founder Tanshul Kumar, who wants to create a virtual card backed by cryptocurrency at a very difficult time.
You've surely seen that operators of an ICO were recently arrested for committing fraud in association with a project to offer a debit card. What are you doing to ensure that you are different from that project, and how can you assure potential investors that they won't fall into a similar trap?
Kumar: At the first stage, MoxyOne will only offer a virtual card provided by payment companies across the globe. Visa, American Express, and MasterCard have banned cryptocurrency cards, but there are still several credit card companies that support cryptocurrencies, like JCB, UnionPay, and Diners Club. MoxyOne is negotiating with these companies. [Update: Diners Club is operated by Discover, which has since indicated that there will be no negotiations concerning MoxyOne as it does not allow customers to purchase cryptocurrencies.]
The idea of issuing a debit card is bridging the cryptocurrency world with the real world. In Asia, people tend to pay with their phone. China has AliPay and WeChat Pay. Japan, Korea, and Taiwan have LinePay. Vietnam has Momo, and of course there's ApplePay and Google Wallet. In MoxyOne's business model, we aim to create a payment version of Uber, where people can help others to complete the real-life payment with a phone-based payment gateway.
How long will it be until ether and other cryptocurrencies will be integrated in your system, and why should anyone participate prior to inclusion?
Kumar: The highlight of MoxyOne isn't supporting the mainstream cryptocurrencies like ether or bitcoin, but all cryptocurrencies. Right now, MoxyOne has deals with eBitcoin, inbox, Cobinhood, and Flux. Their cryptocurrencies would be part of the first batch of our cryptocurrencies-backed virtual card. We aim to help them to issue virtual cards this year in Q3.
Is your initial target market only Australia? If so, then why and what type of clearance have you received from any regulatory authorities in that jurisdiction?
Kumar: Our target market is not only Australia. However, the team is based here and the project is to be started here initially. But the project (infrastructure) would be adaptable to any ICO.
MoxyOne plans to use funds to get a legal and compliance team together to ensure that in the countries they expand to they meet all the laws and regulations of that particular country. We are a registered business under the Australian business register.