Kyberswap, a decentralized exchange based on Ethereum, announced that it will start providing fiat-to-crypto on-ramp on its platform. This service was made available to customers in collaboration with Coindirect, making it one of the first few decentralized exchanges to have a fiat-to-crypto gateway. With this, the platform’s users will be able to purchase ETH for fiat via debit/credit cards.
The decentralized exchange is quite prevalent in the Ethereum community for its token swap feature and its non-custodial limit orders. Additionally, the platform only provides trading services for ERC20 tokens and already has over 70 tokens listed on the exchange including Wrapped Bitcoin [WBTC], DAI, TUSD, and BAT.
Decentralized exchanges are considered to be the gateway for those who want services without obliging to any regulatory framework. However, this did not stop US Securities and Exchange Commission [SEC] from taking an action against the founder of a decentralized exchange.
In November 2018, the commission released an official statement on charging a penalty of around $400k for operating an unregistered securities exchange. This, in turn, resulted in a discussion of the jurisdiction regulatory bodies have when it comes to decentralized exchanges.
When asked about the regulatory implications this could have, a representative of KyberSwap told to AMBCrypto,
“Kyber chose Coindirect as its third-party solution for this purpose specifically given their level of compliance with international AML and CFT standards. The KyberSwap fiat-crypto support is entirely through integration with Coindirect, so we’re just making the entire process of buying Eth much more seamless for our users.”
The representative further stated that the service provider “adhere to the most stringent industry compliance” in terms of protecting customers banking details.
“Coindirect, through its issuing partners offer PCI DSS Level 1 security standards and are PCI DSS level 1 certified. This means that its technical solution and processes meet the highest industry requirements, keeping everyone’s transactions safe on a world-class level.”