MEXC Global | Banxa – Ask Me Anything
Banxa Founder and Chairman Domenic Carosa spoke with MEXC Global’s Mark Nezvisky to answer some customer questions.
Mark Nezvisky, MEXC Global Youtube host and presenter, caught up with Founder and Chairman Domenic Carosa of Banxa. Below are some excerpts from Domenic’s interview where he answered some of Mark’s questions as well as some community questions. Read about Banxa’s background and where the future can take us.
The AMA has been edited and condensed for clarity. A link to the full AMA is available below.
Mark | MEXC Global:
Domenic, thank you for the interview. We have some questions from the community, but before we jump into those, I wanted to ask you about the case studies on your website – you have all these great companies listed; how is Banxa helping them?
Domenic | Banxa:
Banxa provides the payment and compliance infrastructure to major crypto exchanges and wallets and helps them continue focusing on being a cryptocurrency exchange while we take over and manage all the fiat on-ramps and off-ramps in a compliant way. As a result, Banxa has some of the highest conversion rates in the industry. This is how we can help our exchange partners and, increasingly, DeFi and NFT platforms increase their revenue, traction and customer stickiness.
Mark | MEXC Global:
Your website also mentions that “Conversion is King” and that 62% of customers who have a failed order don’t try a service again. How are you able to improve that?
Domenic | Banxa:
Part of it is the internal secret sauce over the last eight years. Still, at the same time, Banxa is known for offering local payment methods, as well as credit cards and global payments, offering a much higher conversion rate and creating a much better customer experience. So that is one of the major ways to differentiate ourselves from our competitors.
Mark | MEXC Global (community question):
Your project has great features. There must be an experienced team behind it. Can you tell us about your team and their experiences in the market?
Domenic | Banxa:
It always starts with the team. Collectively there are over 200 years of experience within just the senior management team. Some of the senior team and I have been involved in the industry since 2013. We have a great team and work with our customers and partners to build a great business for everyone.
Mark | MEXC Global (community question):
Can you explain what Banxa is offering to the DeFi world?
Domenic | Banxa:
Banxa is like PayPal for the crypto industry, including the DeFi industry. We allow customers to go from fiat directly into a DeFi coin without going through multiple steps in the process. So, it’s simpler, faster and cheaper.
Mark | MEXC Global (community question):
In what ways is your project revolutionary?
Domenic | Banxa:
Banxa is doing things very differently in the space, combining credit cards with local payment methods. Most importantly, all wrapped in multiple crypto licences or VASP, Virtual Asset Service Provider licences. We bring all this together in a single API to provide our customers with a much more seamless experience that is compliant around the world.
Mark | MEXC Global (community question):
As you look back to the day when you started this project, do you guys feel satisfied by seeing your progress and achievements till now?
Domenic | Banxa:
Business is always a journey, and we’ve had our ups and downs as an organisation. Since 2013, there’s been a couple of crypto winters. Not only have we survived, but we have been prospering. Our Total Transaction Volume (TTV) continues to grow, up over 100% in the December ‘21 quarter vs the September ‘21 quarter. This is a testament to the great team and our loyal partners.
Mark | MEXC Global (community question):
What is Banxa currently focusing on? Expanding or listing on more exchanges, building your ecosystem or marketing and partnerships?
Domenic | Banxa:
It’s a combination of all of the above; we are continuing to add new partners, not only across exchanges but NFT platforms, gaming and the metaverse. In addition, we are adding support for more countries, more local payment methods, more coins and additional VASP licences. Right now, we are working on expanding into new countries, such as Brazil, Turkey and India, and are also focusing more on the US.
Mark | MEXC Global:
Does it take much time to overcome the legal hurdles of getting into a market in a specific country?
Domenic | Banxa:
It depends on the country. Out of our 220 people, roughly a quarter is in Regulation and Compliance.
We have a very strong focus on following the rules because partly our job for our partners is through the adoption and management of rules and regulations in each country. That means acquiring licences. It’s not an easy process, it’s quite challenging, but we like challenges.
The fact that Banxa is listed on the Toronto Stock Exchange and very soon NASDAQ adds further credibility when dealing with regulators.
Mark | MEXC Global (community question):
What is Banxa’s maximum potential?
Domenic | Banxa:
This really comes back to our vision – why are we here? We know that the whole industry is now moving from the early adopter – from the nerds like me – to the mass market. This is where the big growth will come from over the next 5 or 6 years. Our vision and focus is onboarding the next billion people into the crypto space.
Mark | MEXC Global:
You are saying that you are one of the early adopters. What got you interested in the crypto industry in the first place?
Domenic | Banxa:
Back in 2013, I was fascinated by the technology and the fact that the whole industry moves so quickly. Peer-to-peer decentralised currency made sense in 2013, and it makes even more sense today.
We are a big advocate and believer in Web3, and all of these new Web3 applications will need the fiat on-ramps to onboard the mass market, the primary market in the fiat world.
Mark | MEXC Global:
How many global crypto exchanges have partnerships with Banxa?
Domenic | Banxa:
We have over 100 partnerships and expect to continue increasing over the next couple of years.
We encourage anyone interested in partnering with Banxa to check out our website and reach out to have a chat with us.
Mark | MEXC Global (community question):
From a startup project to a mainstream project, being a pioneer in the industry, does Banxa anticipate that many new startups will show up and compete?
Domenic | Banxa:
Competition is part of a growing ecosystem, and it makes us build smarter and faster, so we certainly welcome any competition.
As we acquire additional licences, we build a defensible moat around our business because getting these licences is a long and expensive business.
Mark | MEXC Global (community question):
What do you think about the boom of the NFT and DeFi association that is causing so much interest?
Domenic | Banxa:
We see significant opportunities in the DeFi and NFT space, gaming and metaverse. We’re already offering several Layer 2 solutions and coins in the marketplace.
Mark | MEXC Global (community question):
Many projects have problems with UI/UX, and this can turn off new users. How do you plan to improve the interaction with new users?
Domenic | Banxa:
Customer experience is front and centre, and we are always trying to improve it. Customers already go from clicking the first button to getting their crypto in under 5 minutes. There will always be some required steps, though, like Know-Your-Customer (KYC) and Anti-Money Laundering (AML) checks because we are a regulated company, but UI/UX is of great importance.
Mark | MEXC Global (community question):
What are your security measures for hacking and bugs? Have you conducted any audits to make your smart contract safe?
Domenic | Banxa:
Because Banxa is a limited company traded on the stock exchange, we don’t have a token or smart contract. We do have a dedicated internal security team augmented by several external security firms.
At the same time, we have an external auditor and are audited quarterly, allowing us to be transparent to our shareholders.
Mark | MEXC Global (community question):
Is this project really good for the future?
Domenic | Banxa:
It’s not just about fiat on-ramps, regulation and compliance, but why is Banxa really here? We believe that bitcoin and blockchain are creating a new financial system. Everyone should have access to the same high net worth tools. Our mission is democratising finance and onboarding the next billion people into the digital asset space. This is much bigger than just Banxa, but we believe this will change the world for the better.
To watch the interview in full, check out the MECX youtube and keep an eye on the Banxa Twitter to stay up to date on future AMAs and calls for questions.