When people think about the finance industry, the focus is usually on the US and Europe. This is a completely natural leap considering that these are the most developed nations and global centres of finance. But things are different when it comes to cryptocurrencies, with Asian countries taking a lead. Even then, you may not be aware of what’s going on in Asia and crypto beyond, say, the price of Bitcoin. We hope that this article will change your perspective and shed a light on some excellent advances currently ongoing in Asia. As we advance toward 2020, perhaps you too can shift your focus to the east and see what opportunities you might find there.
Today, remittance is a $600 billion industry and still growing. This is a result of people moving to different countries for work, study, etc. and sending money back to their homes. When most people think about this, it doesn’t seem like a big deal because it’s so easy to send money by bank transfer. However, things are not the same for developing countries because of the absence of well-developed banking systems. (Click here to: Find Out More About Tezos and Its Price Prediction For 2020)
To bridge this gap, a foreign worker who needs to send cash will visit a "Money Transfer Shop" (MTO) and deposit the money. Thereafter, the MTO will then ‘send’ the cash to the destination country. Most of these MTOs will send the money through a company like Western Union or Moneygram because even they don’t have the required resources such as licensing, software and finances. This adds another cost to the remittance because both the MTO and the payment service provider have to make a profit.
Worse still, MTOs have restricted choices for payment services providers, meaning that the provider can charge the MTO over the top expenses to utilize their product. In the majority of Bitspark's operational nations, MTOs pay about 80% of the expenses they charge clients to the provider. For instance, if a money transfer shop charges a $5 expense for a settlement, it just pockets $1 of it, while the other $4 goes to the product supplier.
As you can see, this kind of system generates a lot of charges that eventually cost the sender. Previously, people had no choice but to swallow these costs, but Bitspark was determined to change this system. The company intended to provide all necessary banking structures for developing countries to enable faster remittances and at a cheaper cost.
Bitspark's answer was to create a free cloud-based platform that empowers MTOs to send, oversee and get payments. MTOs would also be able to oversee client due diligence and get itemized business examination. Any MTO can pursue free with Bitspark and utilize the platform. Based in Hong Kong, this crypto company has become one of the most popular companies in Asia thanks to many benefits it offers its users.
Advantages of using Bitspark
The most important aspect was to lower charges for sending money. Bitspark charges half the expense to MTOs rather than the 80% charge you normally see from the payment service providers. This way, shops save 2.5x more per commission and can use those funds to expand their business.
In addition, Bitspark is situated in the cloud and hence the MTO requires just a gadget associated with the web. This gets rid of most MTO operational costs, for example, upkeep and establishment charges for physical programming. Finally, Bitspark's database stores every client's KYC/AML data from the hour of record creation, enabling a client to get cash and top up in 15 seconds.
There has been a consistent struggle in the remittance business with banks trying to avoid taking risks. Many banks have been closing down MTOs’ bank accounts in view of worries regarding Anti Money Laundering (AML) and Know Your Customer (KYC) guidelines especially in the association of money. The banks are afraid that working with MTOs may put them in hot water with financial regulators for failing to adhere to AML/KYC guidelines. Subsequently, many MTOs can never again work and maintain their business.
Bitspark's unique center was the movement of cash between Hong Kong and the Philippines. Numerous Filipino ladies move to Hong Kong and work as domestic workers so as to accommodate their families back home. Accordingly, they need a settlement alternative that is modest and simple to utilize. To help them, Bitspark built a money-in money-out settlement platform utilizing Bitcoin and Blockchain innovation. After some time Bitspark has extended to 7 distinctive goal nations including Pakistan, Vietnam, Nigeria, Ghana, Indonesia, Malaysia, and Hong Kong.
In mid-2017, Bitspark presented Sendy, a versatile application for senders and collectors. It goes about as a completely working portable wallet and application clients can find MTOs, top up their account balance and send cash all inside the application. It empowers clients to send cash through over 100,000+ money pickup goals in the Philippines, Indonesia, and Vietnam. Sendy clients can likewise become top up operators and procure a benefit by topping up other senders' balances. (Investors should know about the: aelf (ELF) Network Long-Term Forecast)
The dispatch of Sendy was significant as it permitted Bitspark's current MTOs to stay applicable as Bitspark was seeing a huge development to sending cash with cell phones. Likewise, Bitspark.io and Sendy enabled MTOs to keep running their business without paying extravagant expenses while also diminishing their overheads.
Bitspark 2.0 and switch to BitShares
The principal advancement in Bitspark 2.0 is the change from Bitcoin's Blockchain to BitShares. Bitspark accepts that the BitShares Blockchain is a superior elective with regards to the settlement business for a few reasons.
To begin with, Bitcoin's expenses are erratic. It is flippant and wild to tell a client that one day their expense on a $100 settlement could be $0.50 and the following day $3.00. Subsequently, Bitcoin settlement organizations must have adequate advance funding to prefund a lot of cash with their liquidity suppliers and lock in rates. What's more, Bitspark can't enter a nation where there is no outsider accomplice to give Bitcoin liquidity, which means acquiring BTC for the corresponding fiat on the opposite end. (Have you ever wondered: Will Forex Trading Be Illegal in Future? Last Law Decisions)
With Bitshares, the exchange charges are negligible and the testnet has demonstrated that BitShares can scale up to 100,000 exchanges for each second. Subsequently, Bitspark now can send individual transactions over the globe at little cost as opposed to drawing down liquidity suppliers' balances each time cash is sent. This opens up capital to use for other elective costs such as marketing and sales. (These are the: Main Features of Canadian, US, Australian and UK Forex Industries)
Second, Bitspark has changed to BitShares thanks to the capacity to make fiat pegged cryptographic money. Many developing nations depend on remittances, and a major issue is MTOs have no real way to settle in the destination country’s currency. MTOs thus need to utilize other services to change over to and from USD in their local currency, which leads to additional conversion fees. BitShares enables you to make a pegged cryptographic money that tracks the cost of the nearby cash you are exchanging as long as you have adequate (2x) BTS to secure as insurance.
You can exchange it on the Bitshares DEX, their decentralized trade, which means there is no danger of getting your bank account closed or losing your money. It is likewise trustless as the cash is sponsored by a savvy contract on the blockchain, accessible for everybody's viewing pleasure. In this manner, there is no compelling reason to change over to USD and MTOs in creating nations will currently have the option to settle in their local money. Bitspark also launched its own decentralized exchange called Sparkdex on which users could exchange between cryptocurrencies and fiat. (And this is the: Binance Coin Price Prediction 2019)
What Bitspark is expecting to do is make a system of MTOs and senders who execute with one another, bypassing the whole financial framework all the while. For instance, if a sender needs to top up their balance in Sendy to send cash abroad and an MTO needs money to pay for instance, utility costs, etc., they can exchange with one another. The Sendy client may pay the MTO money ¥100 and get BitCNY ¥101, procuring a benefit all the while (or the other way around). This makes a motivating force for the clients to execute and makes rivalry for MTOs who are needing either a digital or cash balance. (Here is our: Cosmos (ATOM) Price Prediction 2020)
Why switch over to Bitshares?
There are several reasons why Bitspark chose to switch over to Bitshares, but here are the top reasons you should know:
stablecoins BitUSD and BitCNY facilitate sending payment without having to convert currency to USD as described above
presence of a decentralized exchange (DEX) to provide digital and fiat currency conversion
addresses are easily readable and thus easy to use compared to Bitcoin
complies with AML/KYC guidelines
fast transaction speeds allow for instantaneous remittances instead of typical days-long waiting
Bitspark's most up to date improvement is the Initial Coin Offering (ICO) of the Zephyr Token, a prize token for boosting financially useful exchanges on Bitspark's settlement arrangement. This means when somebody sends cash, gets cash, brings new clients or liquidates an MTO's balance on Bitspark's system, he/she will get Zephyr as a prize. This is significant in light of the fact that, at no other time, have individuals earned cash for sending and getting cash, it has consistently been a different way.
Project Zephyr's goal is to turn out 180+ fiat pegged digital currencies to Bitspark's platform on top of the BitShares Blockchain, dispensing with the requirement for banks completely. The Zephyr ICO raised $1.3 million initially, and the sale of tokens is still ongoing from the Bitspark website. (What you should know about: Trading with Bitcoin Futures on US Stock Market)
Bitspark has focused on utilizing 25% of exchange expenses to repurchase Zephyr on the DEX. Expenses come from Sendy top-ups and Sendy cash payments, and are set by Bitspark or a top-up operator. The buyback's point is to expand purchasing weight and increase the value of the coin. This guarantees as more exchanges happen on the system, there will be steady positive value weight and greater liquidity, boosting significantly more trades, which make a positive input circle for the token's worth. (This is: How Libra Coin Will Change the World's Financial System)
Bitspark has also banded together with the United Nations Development Program to steer the Zephyr Project in Tajikistan. Tajikistan is a nation whose GDP is 30% dependent on remittances, for the most part from remote laborers in Russia. Because of Tajik's inadequately working MTO network, the open door is ideal for Bitspark to present its new pegged digital currency remittance platform. After Tajikistan, the arrangement is to send pegged digital forms of money to all Bitspark nations, and afterward to each nation on the planet! (Here is everything you need to know about: THETA Coin Investment and Price Prediction 2020)
Everyone interested in the crypto industry probably already knows something about Binance, if not being a customer. This company started relatively recently back in 2017 in China and quickly grew to become the biggest coin exchange platform worldwide by transaction volume. However, the company faced a setback in September 2017 when the Chinese government placed a total ban on crypto trading. The move forced Binance to move away from China and establish headquarters in Malta but with offices in several countries.
Despite this move away from China, Binance is still very much an Asian company and thus qualifies to be on this list. Besides, it made an investment in a funding round for Mars Finance in September 2019, signaling a comeback to China. Experts explain this tentative comeback as a response to China’s softening stance against crypto. The People’s Bank of China, for example, signaled that it was keen on creating its own central bank digital currency (CBDC). To this end, China is working with tech companies like Alibaba and Tencent as well as banking institutions. Adding a crypto company, especially one as prolific as Binance, would definitely help the government achieve that goal. (Find out: What is Huobi Coin and its Price Prediction for 2020?)
Although the news of Binance returning to China came as a bit of a shock to many, it actually makes sense considering that China is still one of the most active crypto markets in the world. And in addition to Binance, several other major crypto companies in the region also participated in the funding for Mars Financial. Some of these included Huobi, OKCoin, IDG Capital, Ceyuan Ventures and MatrixPort. (Here is the: UNUS SED LEO Price Prediction 2020)
Today, Binance has been pushed to second place among crypto exchanges, but it still remains very popular. Binance has maintained this position by combining some very innovative products that make it a truly promising crypto company within Asia.
We have previously discussed Binance coin (BNB) in detail here at Top Brokers, so there’s no need to go over it again. In brief, though, BNB was launched to be a token for use mainly within the Binance ecosystem. Holders of the token would receive incentives such as discounts on transaction fees and withdrawals but also other rewards and multiple uses in other platforms like BitTorrent, Coinify, Magnum Wallet, etc. Most importantly, though, was that BNB was available on various other crypto exchanges for investment. (This is the: Binance Coin Price Prediction 2019)
At the time of publishing, BNB is ranked 8th in the world by market cap ($2.3 billion). During the ICO, a single token was going for about $0.11 and it is now worth over $15. The value of BNB is expected to rise with time because Binance engages in the burning of the tokens quarterly to ensure scarcity and demand for the tokens. (Read this to: Find Out More About Tezos and Its Price Prediction For 2020)
One of the main reasons for Binance’s success is that it is widely used for launching new ICOs. Binance has been very open to accepting new coins to its platform, and this has driven a lot of volume through its doors. To make this process even more effective, Launchpad was… launched. It is a platform on which entrepreneurs can host ICOs without having to do it independently or relying on other blockchain networks like Ethereum. Such networks are notorious for being slow to process transactions while Binance is much faster. (These are the: Most Secure and Regulated Stablecoins of 2020)
Considering the large number of ICOs being held every year, Launchpad has become a significant addition to the list of products offered by this company. Now investors can visit launchpad and browse through all open ICOs and pick which one(s) they would like to invest in. BNB is the primary coin used to fund ICOs on launchpad, which makes the coin more valuable as demand for it rises.
Binance Decentralized Exchange
In addition to the normal exchange Binance operates, the company also has a decentralized exchange. This is different from the normal one in that it is based on the blockchain, Binance chain, rather than a physical location. The benefit of a decentralized exchange (DEX) is that it is less prone to attacks from hackers and also much faster because there is no latency. The Binance DEX works very similarly to the normal exchange, and you can read more about it in a previous post. (Learn everything you need to about the: Launch of The Binance Decentralized Exchange Future (DEX))
Bitcoin and Ethereum futures
The latest addition to Binance services has been the ability to trade BTC and ETH futures on the company’s mobile apps from both iOS and Android. We all know about Bitcoin futures trading on major financial exchanges in the US such as the CME (Chicago Mercantile Exchange) and Cboe (Chicago Board Options Exchange). These platforms were really restrictive as they didn’t allow individual traders to participate without a lot of capital. Binance remedied this problem by issuing both Bitcoin and Ethereum futures and making them readily available on mobile apps. Traders can have access to 125x leverage for BTC futures and 50x leverage for ETH futures, which ensures everyone can participate even with little capital.
Launched just the other day in September 2019, these futures are already breaking records and transacting about $2.7 billion worth of Bitcoin futures alone. Compared to a major exchange like Bakkt that also launched Bitcoin futures in September and recording about $42.5 million in BTC futures, Binance is definitely miles ahead. With this addition, Binance is truly positioned to be one of the most promising crypto companies in Asia, if not the whole world. (Find out more about: OmiseGo (OMG) Coin and Price Prediction for 2020)
Other Asian startups
We could go on talking about the exploits being achieved by crypto companies in Asia, but that would take too long. Instead, let’s look at a few other promising startups with practical uses that make them very interesting come 2020.
Situated in Singapore, Coinhako is an all inclusive digital money company as a wallet and exchange. Its point is to make crypto progressively open to day by day purchasers in the more prominent Asia-Pacific area and fill in as a portal among fiat and crypto. They currently offer 100 fiat-crypto exchange pairings, connecting SGD, MYR, IDR and VND to 25 cryptographic forms of money, including a scope of stablecoins pegged to the USD.
Established in 2015, this Indonesian startup provides data exchange based on a blockchain to offer information on food and farming. It attempts to give ranchers significant and elusive information, for example, land possession or harvest costs crosswise over Indonesia. The individuals who input information are remunerated with HARA tokens which can be exchanged for products, for example, composts. Hara helps ranchers by producing the information money related organizations need to assist them with dispensing advances, in this way encouraging monetary consideration.
Propelled in Malaysia, 2018, the Dacsee platform is a decentralized and independent social ride-sharing app based on the Ethereum blockchain. Payments are made either by Dacsee tokens, or ordinary cash. At the point when the money is gathered, its majority is taken back to the stage partners made up by drivers, travelers and government specialists. Commissions are redistributed based on a few measurements, for example, network positioning, time allotment on the stage, the quantity of rides taken or given, and the size of 'friend network'.
Expanding on the sharing economy, this Singapore based startup empowers clients to share additional room on their PCs that they needn't bother with. Organizations can store information over numerous PCs, or hubs, dispensing with the danger of device failure and main issues of disappointment. Bluzelle pays those providing data storage in BLZ tokens. (Here’s an interesting question: Will Crypto Trading Become Popular in Islamic Countries?)
With everything taken into account, we can see that Asia isn't simply opening up to crypto but actually leading the pack. As the crypto winter is reaching a conclusion and an ever-increasing number of individuals are getting involved with crypto, it'll be intriguing to perceive how the administrative atmosphere advances and where foreseen development spurts will be occurring.
Asian crypto companies are really taking off, as this expert explains in this video: