Bybit Enables Fiat Crypto Purchases Via Debit & Credit Cards

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Crypto derivatives exchange Bybit is looking to simplify the cryptocurrency purchasing process by including fiat onramps on its platform. Now, users will be able to buy digital tokens using their debit and credit cards.

Fiat payment gateways can provide easier access into the crypto space given that people are already used to making online purchases via processors like Mastercard and Visa. However, exchanges need to partner with reliable payment providers to enable such functionalities on their platform.

Seamless Funding and Trading for Bybit Users

Bybit announced the news of its fiat onramp via a press release shared with Blockonomi on Monday (June 22, 2020). According to the press statement, the crypto derivatives exchange has inked useful partnerships with payment providers Banxa and Xanpool to allow its customers to buy cryptocurrencies using Mastercard, and Visa credit/debit cards. Bybit users can also buy Bitcoin (BTC) and Ethereum (ETH) via bank transfer.

For Bybit, the roll-out of credit and debit card crypto purchasing is to provide its users with greater funding flexibility. According to Bybit, instant cryptocurrency buying via fiat onramps mean users can quickly fund their accounts and enter into potentially profitable trading positions.

Commenting on the new feature, Bybit CEO Ben Zhou told Blockonomi:

“Adding fiat-crypto support is another major milestone in our roadmap, and a major coup for Bybit traders who have been patiently waiting for this day to arrive. Thanks to our payment partners Banxa and Xanpool, Bybit users can now frictionlessly purchase crypto with credit or debit card at some of the most competitive rates on the market.”

As part of the roll-out of its fiat payment onramp, Bybit is launching a promotion that will see customers earn bonuses of $10 in BTC for each $100 BTC or ETH bought via credit or debit card. According to the Singapore-based derivatives exchange, users stand a chance of winning up to $50 in BTC during the one-month-long campaign.

An End to No KYC?

Crypto transactions involving fiat often come under regulatory scrutiny with authorities worried about money laundering and other illegal financial dealings. Hence, crypto platforms that deal with national currencies in regulated environments tend to adhere to know your customer (KYC) verification standards.

Critics of KYC checks say the storage of customer’s personal information is an invitation to hackers and other cybercriminals. Indeed, apart from the theft of funds, cryptocurrency businesses have seen malicious intrusions aimed at stealing user data.

As previously reported by Blockonomi, Bybit does not require KYC checks for operating trading accounts on its platform. The platform rolled out is crypto derivatives trading service at the start of 2019 and has since added Tether (USDT) perpetual contracts. As part of the USDT perpetual contracts roll out, the exchange carried out a 1,000 USDT airdrop back in April.

Crypto Derivatives Trading ‘Arms Race’

Trading crypto derivatives is becoming more popular with several platforms jostling for a greater share of the expanding market. Even emerging market sectors like decentralized finance (DeFi) are beginning to appear appealing to stakeholders in the cryptocurrency derivatives scene. With DeFi lending protocol Compound making a big splash over the last few days, some platforms are announcing plans to launch derivatives based on the second-largest DeFi project.

Crypto derivatives trading topped $2T in Q1 2020, almost a quarter of the $8.8T cryptocurrency trading total recorded during the period as captured by TokenInsight. Large liquidations on crypto derivatives platforms are accompanying massive price surges or dumps for Bitcoin and the crypto market in general, an indication of the growing influence exerted by the market sector.

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