TenX cancels Dash debit card due to regulators’ privacy concerns
Crypto platform TenX has told Dash that it can no longer pursue its plans to make a Dash debit card due to the legal difficulties which come from working with cryptocurrencies with a privacy focus. It has also discontinued its wallet option for Dash users and will be returning all balances.
The problems arose from trying to integrate the worlds of crypto and mainstream finance. In a statement to the Dash community Mike Ferrer, TenX’s Community Manager, said that the company is “in the process of applying for financial institution licenses in several countries”. Though TenX has so far managed to get approval for BTC and ETH based products, it has made no progress with “privacy-focused coins such as Monero and Dash”.
The company finds now finds itself “unable to find a solution that would allow us to integrate Dash into our payment solution” while at the same team satisfying “the requirements of the relevant regulatory authorities”.
The original proposal for the debit card was raised more than a year ago, with the project expected to be completed within weeks. According to TenX co-founder Dr. Julian Hosp, the company was “integrating cryptocurrencies directly into a payment system that lets you pay with a debit card while storing these currencies”. After its success with Bitcoin and Ethereum, TenX was “looking into adding Dash as the next currency”.
Users would be able to send DASH to the TenX wallet and then pay for purchases using a debit card with no need to maintain any fiat balances. The Dash Foundation raised 305 DASH (around $145,500 at current prices) from its community to fund the project costs.
TenX say that it is “only fair” to return in full the 305 DASH to the foundation for redistribution to the original contributors.
It says that despite the setback it “remains committed to the Dash community and will continue to explore alternative solutions to make Dash spendable”.
Dash Core Group CFO Glenn Austin confirmed that the funds had been received and said that the Dash team looked forward “to working with [TenX] on future endeavors”.
Image From Shutterstock