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BitPesa Secures More Funding But Is Forced To Reduce Kenyan Service

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BitPesa Secures Funding

Nairobi-based bitcoin startup Bitpesa has secured follow up funding to its Series A round earlier this year. This new round of funding is led by venture capital firm Greycroft Partners, which has experience investing in tech startups such as Braintree and Venmo, provides BitPesa with a further cash injection.

Investors Attracted By Positive Growth

The new round of financing comes at a time the firm is experiencing steady growth in African markets. Bitpesa is currently handling monthly trade volumes of $10 million, up from $1 million in 2016, with a 25% increase every month for the last two years. The company’s model which uses the bitcoin blockchain to provide low-cost B2B payment processing for local and international markets led to its being named the best fintech solution in Africa at the AppsAfrica Awards 2016.

Bitpesa CEO, Elizabeth Rossiello commented in AppsAfrica: “We keep raising because we have grown above and beyond projections […] We have expanded across Africa and Europe, added a stellar roster of Fortune 100 companies as clients and are receiving growing support from regulators.”

BitPesa received an additional new investor Plug and Play, with existing shareholders also fronting extra capital. Investors from previous funding rounds include Draper Associates, Pantera Capital, Blockchain Capital and Digital Currency Group.

According to Greycroft founder Alan Patricof in a Disrupt Africa interview, the investment firm believes bitcoin has potential when it comes to remittances and payments in emerging markets, an area where BitPesa is well positioned.

Plug and Play vice president, Scott Robinson also added: “BitPesa promises to revolutionise the exchange and payment markets in Africa, disrupting monopoly incumbents and opening the fastest growing economies in the world to foreign companies. We’re very excited for the team’s vision and current execution which bolsters payment avenues throughout the region.”

BitPesa has now doubled its team to around 40 employees since last year and is exploring cross-border payments as a significant growth area for the future, particularly for its African clients.

Strategic Partnerships

BitPesa aims to transform the financial landscape in Africa through its peer-to-peer payment network and bitcoin exchange. One way is through identifying cutting edge partners who can assist the company in rolling out other B2B products such as trade financing and lending. Already, BitPesa is actively seeking banks and MNOs (Mobile Network Operators) in each region to partner with.

While many have been reluctant to work with bitcoin startups in the past, with the company becoming FCA approved in the UK and Japan allowing the use of bitcoin as a transactional currency, hopefully, local banks and MNOs will be more open to integrating bitcoin technology in their operations. The company is also proactively engaging with regulators in African markets that have banned

The company is also proactively engaging with regulators in African markets that have banned bitcoin like Kenya and Nigeria, to find a way to service SME’s and individual clients.

Effect of the Price Rally

The price of bitcoin has surged to all-time highs since the start of the year, coming amidst the August 1 Segwit infrastructure upgrade that resulted in a currency split, and formation of bitcoin cash. With another potential technical upgrade coming for bitcoin in November, Rossiello insists bitcoin will still be used on the platform due to it being more liquid than other digital currencies.

“The speed of bitcoin payments has increased and this move ensures that technology can continue to have an “industrial use,” underscoring how strongly people believe in it. We’re experiencing an exciting moment for the firm and for the industry.”

The company is also expanding its presence in Francophone Africa with an office in Senegal, and in Europe, due to the increased money transfer volumes between this markets. The additional capital together with the wealth of experience the investors bring to the company will be instrumental in making it a market leader in Africa’s payments space.

Retracing in Kenya Due to a Difficult Regulatory Environment

Despite the good news of high growth figures and increasing funding for what is widely considered Africa’s leading bitcoin startup, the company announced on September 1 that it is making changes to the services it offers to its Kenyan customers.

Citing the difficult regulatory environment in Kenya that prohibits bitcoin-related startups from opening or maintaining business bank accounts with local banks, which is hindering the firm from process payments in Kenyan Shillings, BitPesa has decided that the verification of new customers in Kenya will be paused and that the new minimum limit for transactions in Kenya will be $25,000.

This means that buying bitcoin in Kenya using BitPesa will unfortunately only be available for businesses and high net worth individuals who are already existing BitPesa customers.

Regardless of the difficulties in the startup’s “home country”, BitPesa is a great example of a resilient African bitcoin startup that is able to navigate the complexities of dealing in digital currency in different jurisdictions around the globe.

Bitcoin

Crypto.com Introduces Crypto Earn and Crypto Credit

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Crypto.com

Cryptocurrency platform Crypto.com has introduced Crypto Earn and Crypto Credit to enable users to earn interest on their coins and borrow by using digital currency as collateral.

Crypto Earn And Crypto Credit

Crypto Earn is a financial product that allows users to earn as much as eight percent per annum in interest on their cryptoasset holdings.

Crypto.comTo do this, users deposit digital assets into Crypto Earn through the Crypto.com app and then begin accumulating interest each day through their preferred cryptocurrency. To get started with Crypto Earn, users will have bitcoin, Paxos, and TrueUSD to choose from, according to a company press release.

Crypto.com is offering users two fixed periods namely one-month and three-month terms to earn interest on digital assets. The company will soon provide users with a flexible holding term. With Crypto Earn, you can also withdraw and deposit coins at no fees and spend what you earn.

Crypto Credit gives users instant loans with bitcoin as collateral. Users are free from fixed repayment schedules, monthly fees, payment deadlines, and late fees which financial institutions such as banks often impose. Users, therefore, enjoy a flexible repayment schedule in the twelve months from the beginning of the credit term.

Furthermore, users owning MCO tokens staked in the app receive a special rate of eight percent per annum. Users can use their loans to buy more cryptocurrencies on the app or they can spend it on the MCO Visa Card with cash back of up to five percent.

Other benefits of using Crypto Credit are that you do not require credit checks and that you can get the credit limit you want.

“Crypto Earn offers the most attractive interest rates in the market today. With the MCO Visa Card and Crypto Credit, we are uniquely positioned to do it while maintaining sustainable unit economics. MCO Visa Card, Crypto Earn, and Crypto Credit together form a powerful product suite that nobody else in the industry has today. We have never been more excited about the potential of our platform and look forward to continue scaling it globally later this year,” said Kris Marszalek, co-founder and CEO of Crypto.com.

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Different Kinds of Bitcoin Trading Strategies You Should Know About

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trading strategies you should know

Bitcoin has been around for over 10 years now. There are a lot of things that have evolved with it over the years, including how easy and secure it is to buy, the different ways we can buy it, and the various bitcoin trading strategies that people use now.

There are a lot of bitcoin trading strategies now that it could intimidate a lot of newbies trying to get into bitcoin. The truth is, each strategy caters to a specific kind of trader so if you’re new, these strategies might be worth looking into before you invest any kind of money.

Different Strategies

To help get you started on choosing the kind of strategy you’re looking for, here are the two most common strategies that bitcoin traders use:

HODLing

You may have seen this slang around while doing your research. “HODL” refers to holding your position. It was created in 2013 when bitcoin’s price was dropping but a certain user decided not to sell his shares. He meant to write “HOLDing” but ended up making a typo instead: “HODLing”. It eventually caught on and people decided to give it a new meaning: “Holding On for Dear Life.”

The HODLing strategy refers to the holding of your bitcoins in hopes that your investment will grow over time. To start HODLing, buy bitcoins in bulk when the price is low and then keep it close while watching the crypto market. People can hold their positions from weeks to months to even more than a year. It’s the easiest and one of the more common trading strategies.

Day-trading

BTCDay-trading is another very common form of trading in the bitcoin world. The strategy refers to closing all your positions before the day ends. It involves executing long and short trades to capitalize on the market price of that day. Basically, this prevents having open positions overnight by finishing all your trades within the day.

It’s a more technical form of trading and it requires your full attention and a lot of your time. You’ll need to keep a close eye on all your positions and possibly watch multiple screens to do so. It requires a high degree of focus as well as a good knowledge of how the crypto industry works.

Just getting started

These two trading strategies are literally the most common forms of trading. There are so many more strategies such as swing trading and alt-coin filipping that you’ll need to learn but these two should get you started on your bitcoin journey.

Now, all you’ll have to do is decide on which of the two suits you more. Be sure to figure out your game plan before getting into bitcoin at all and your style should follow.

This guest post was contributed by cryptocurrency education and news platform WeAreCryptos. 

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Ghana’s Securities Exchange Commission (SEC) Warns Public About Investing in Crypto

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In a recent statement, the SEC of Ghana has warned the populace against investing in cryptocurrency and crypto-related investment schemes. This warning comes amidst a growing concern of the Security and Exchange Commission (SEC) about how Ghanaians are diving head first into the cryptocurrency market.

SEC Warns About Crypto

The Director General of the SEC, Rev. Daniel Ogbarmey Tetteh, signed an official statement released by the Commission that cautions the general public about cryptocurrency trading and all crypto-related activities as these are not regulated by the Securities Exchange Commission reports News Ghana

“[Cryptocurrency investments] offered by unregistered and unlicensed entities on digital online trading platforms with promises of high returns on investment are not sanctioned nor registered by the SEC”, the statement read.

The Commission’s statement further read:

Ghana SEC“The SEC wishes to inform the general and investing public that none of these cryptocurrencies is recognised as currency or legal tender in Ghana. The platform on which they are traded are not also licensed nor regulated by the SEC. The SEC would like to make it clear that it does not currently regulate these types of products offerings and their accompanying online trading platforms or Exchanges. Members of the general public who are investing or intend to invest in such currencies or assets may be doing so at their own risk and can in no way be protected under the Securities law regime in Ghana.”

Currently, digital asset trading remains a regulatory and legal grey area in the West African nation. Whereas the SEC has stated that it is presently not in support of or regulating cryptocurrencies, it also has not stated that cryptocurrency trading is illegal.

The regulator only mentions that they are “unregistered, unlicensed, and unregulated under the Securities Law of Ghana“. Thus, this can be very much regarded as a “disclaimer” on the part of the regulatory body to the public to sensitise them that trading in cryptocurrencies in the country presently is only done at one’s own risk.

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