Cryptocurrency platform BitX welcomes regulatory scrutiny

Cryptocurrency platform BitX says it welcomes regulatory scrutiny as the firm eyes expansion after a capital injection.

Fin24 parent Naspers on Tuesday announced funding of the Singapore-based platform to the tune of $4m.

“Compliance and security is our highest priority and we continue to work closely with regulators and other relevant stakeholders around the world to ensure the highest possible standards of compliance,” Werner van Rooyen, BitX business development officer, told Fin24.

As cryptocurrencies like Bitcoin have grown in popularity, they have come under increasing scrutiny over fears that relative anonymity may facilitate criminal activities such money laundering.

The US Federal Bureau of Investigation (FBI) arrested two former agents for wire fraud and money laundering relating to their investigation into the now defunct Silk Road marketplace where illicit goods were traded using bitcoins.

‘Bad players’

The case highlights how the lack of a central authority for cryptocurrencies can facilitate an underground economy where bad actors can pay for services.

Van Rooyen said that scrutiny of the platform would help clean up the image for cryptocurrencies.

“We welcome regulatory and law enforcement scrutiny of the sector because it helps to weed out all the bad players.”

James Caviness, chief product officer at Naspers subsidiary PayU, will join the BitX board of directors as part of the deal.

The Naspers investment marks the second round of funding for BitX and the money will be used to expand the operation, said Van Rooyen.

“The money will be used for various things, but mainly around hiring (engineering, operations and business development), which will enable us to expand into new markets, enhance existing products and services, and deliver new ones.”

Source: News24

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Cryptocurrency platform BitX welcomes regulatory scrutiny