Bitcoin remittance service Rebit rolls out zero transaction fees, KYC policy Rebit, the remittance arm of Bitcoin umbrella company Satoshi Citadel Industries (SCI), has back-to-back announcements this week: it has brought its remittance fees to zero for some channels, and started implementing a Know-Your-Customer (KYC) policy. Overseas Filipinos may now send money to their loved ones in the Philippines via Bitcoin for free. Rebit’s zero fees apply to over 25 payout options, including major and rural banks, as well as pick-up centers. Prior to this program, the service charged fees of up to one percent of the transaction amount. Rebit, however, says fees will still be charged for money transfers that utilize pawnshops, and select banks outside of Metro Manila. Bitcoin has proven to provide real value as a medium for money transfer and payment because it’s cheap and quick. As it eliminates the numerous hops in the transfer of money globally, it’s able to offer a significant discount to traditional service providers like Western Union or banks, which charge between five and eight percent. Remittances worth about $30 billion flow into the Philippines via banks and third-party cash pick-up services annually, according to Rebit. Recovering what’s spent on fees will provide Filipino families a financial boost. See: Bitcoin remittances to the Philippines have gone up. Here’s why KYC: a red-flag system Apart from its free pricing, Rebit is also introducing a KYC feature. Customers who want to remit bigger amounts of PHP50,000 (US$1,124) and above will be required to provide necessary personal information, SCI head of product Luis Buenaventura II tells Tech in Asia. The implementation of the KYC policy, along with zero fees, runs counter to the common perception that oversight increases transaction costs, and goes in line with Rebit’s core mission of keeping its service affordable. This also means, however, that Rebit will absorb the discount it is offering. This move takes away a revenue stream for the SCI group, but it doesn’t seem to mind at this stage. It is using incentives to build its user base, create demand, and facilitate wider adoption of Bitcoin in the community. It also plans to offset the discounts via its Bitcoin trading business. “There are some pundits that point to regulatory compliance as the main reason for high remittance fees, but we think that there’s still room for profit even at our current zero fees,” says Buenaventura. He adds: “We’ll earn from trading. Every bitcoin remittance service is essentially still a brokerage firm.” Bitcoin has caught investors’ eyes with its promise of disrupting payment systems, but regulators are wary of the possibility of it being used for illegal activities, such as money laundering, if regulatory controls are not put in place. KYC policies such as Rebit’s therefore aim to serve as red-flag systems. But Rebit is implementing the policy on its own initiative. Bitcoin remains unregulated in the Philippines. The Philippine central bank has done nothing except issue an advisory against its use. It warned of the possibilities of Bitcoin digital wallets getting stolen, the value of the cryptocurrency changing quickly, and illegal activities involving Bitcoin. Nonetheless, regulation is a real possibility especially when Bitcoin trades reach volumes large enough to get attention. Rebit says it wants to be a step ahead. “We’re striving to build a strong foundation for the service that we currently have, so we’re undergoing all the AMLA (Anti-Money Laundering Act) and KYC processes even though we’re not required to yet,” Buenaventura relates. Among the requirements that Rebit asks in accordance with KYC are photo ID, confirmed mobile phone number, proof of address, email address, and date of birth. See: Coins.ph users may now convert Bitcoin into cash using ATMs in the Philippines This post Bitcoin remittance service Rebit rolls out zero transaction fees, KYC policy appeared first on Tech in Asia.
Posted on: Thu, 15 Jan 2015 10:50:43 +0000
Trending Topics
Recently Viewed Topics
© 2015