Crypto banking services platform Cashaa raised $5 million from Dubai based O1ex, a blockchain investment and advisory firm. Previously, Cashaa had raised USD 33 Million during the token sale in 2017.
The newly acquired funds, the UK based banking firm says will be used to
- Create a crypto friendly Neo bank in India,
- Achieve Certification for the highest global standards of CyberSecurity for its Banking platform, and
- To cover the loss of funds in the Delhi based OTC hack which took place in July, 2020.
Cashaa currently has cryptocurrencies such as Bitcoin, Cashaa coin, Ethereum and Tether as part of its banking system like the US Dollar, Euro, and Sterling Pound. Cashaa aims to add Indian rupee to its kitty with the crypto friendly Neo Bank.
All banking platforms in India are strictly regulated by the RBI and so will Cashaa’s bank be. Currently there are no restrictions on Banks for serving Crypto firms and traders, however, some banks are reportedly not allowing users to use their accounts for crypto purchases. Cashaa’s product can be India’s first openly crypto friendly bank.
In a statement sent to coin crunch, Kumar Gaurav, CEO & Founder, Cashaa said,
‘India has a tremendous potential in its fintech sector. We believe that the next big evolution in the Banking and Crypto space can actually happen from India. Hence, we have been actively working on developing products, working on our infrastructure and recruitments to power our entry into the Indian market. Apart from India, we will also tap into the African and Caribbean market.’
Cashaa provides banking services to cryptocurrency firms, and says it now has over 100 companies using its beta service in UK and Europe.
Almost a year ago, Cashaa launched an OTC service in India for easing crypto transactions across large channels in the country including many Indian crypto exchanges. One such OTC desk in Delhi suffered a loss of close to ~$3 Million in July 2020, when reportedly a malware in a PC emptied ~336 BTC from Blockchain.com wallets managed by a Cashaa India employee. Cashaa users remained unaffected by the inciden as the UK based company absorbed all the loss.
Part of the recently raised funds will be used to cover the losses due to the hack.
Cashaa has huge amounts of transactional data on crypto-currencies and national currencies, the firm says it has been enabling governments globally to understand the industry better and help develop a positive outlook towards the sector, which it feels can be replicated in India as well.
Gaurav Dubey, CEO and Managing Partner at O1ex told Coin Crunch,
“We have been investing in almost all the rounds in Cashaa (until now). So our relationship is very much like Accel Partners and Slack”Gaurav Dubey, CEO and Managing Partner, O1ex
“I wish the exit also is the same way”, chuckles Dubey. O1ex has invested in several crypto projects aside from Cashaa, including Coti, Springrole, BCT and more. This quarter, O1ex also invested in a project named XBTC, by social capital.
Cashaa’s entry into the Indian market is not a surprise. In a live interview with Coin Crunch, Kumar Gaurav shared these tentative plans of opening a bank and allowing all crypto exchange users to transact risk free in India.
Would you open an account in Cashaa’s New Bank when they launch? Let us know in the comments below.