Exclusive: Canada-based GreenCoinX in talks to raise $20m

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Canada-headquartered GreenCoinX is in initial talks with few investors, to raise around $20 million, Nilam Doctor, president and chief technical officer (CTO) of the firm, told DEALSTREETASIA.

“We have received few confirmations from private equity and venture capital companies to raise the funding,” Doctor said.

However, he declined to divulge more details about the investors but informed, one of them is based out of Mumbaai which manages a VC fund.

GreenCoinX Inc develops GreenCoinX (crypto currency symbol- XGC), the world’s first and only identifiable crypto currency. It identifies users and facilitates the collection of optional taxes by worldwide governments. Optional taxes are similar to TDS (tax deducted at source).

The concept of GreenCoinX was originally come from Nilam Doctor in 2012 and the company is now headed by Daniel Wettreich, the chairman & CEO of GreenCoinX. An MBA in finance by education, Doctor previously founded Hitarth Consultants, a software consultancy firm focused on web based projects and digital currency. He was also CEO of Real Bitcoins, an Indian based promoter of crypto currency.

The company will use the fresh funding for Identified blockchain development with full KYC (Know Your Customer).

Blockchain works as a public ledger of all Bitcoin transactions that are being executed. Using GreenCoinX Blockchain for other things, like contracts, data storage and financial transactions, is much easier than using other blockchains. Other blockchains are based on anonymity and much effort is being expensed to establish identity for these different uses on anonymous blockchains. GreenCoinX is based on identification so these efforts are redundant. The potential uses for the GreenCoinX Blockchain are significant and are being pursued.

In November 2015, GreenCoinX received green signal from Isle of Man, a self-governing British Crown dependency, to start operations there. It will be hiring around 20 people in the Isle of Man over the next one-and-a-half years to operate its unique global treasury
function of controlling the price and supply of XGC in the market uniformly.

The company received seed funding from Canada’s GreenBank Capital Inc in July 2014. Post this, GreenCoinX became the subsidiary of GreenBank Capital and moved its registered office to Canada. Its operational office remained in Ahmedabad.

GreenCoinX claims that it has removed the biggest obstacle that has so far removed barrier to adoption of cryptocurrency largely. There are 140 million GreenCoinX into existence currently and that can reach up to 210 million.

It claims to be the antithesis of Bitcoin and its identification process includes full KYC of the users including the email, phone, passport, driving license, government photo ID and video.

Bitcoin which operates as public and private keys, was originally launched in 2009 by Satoshi Nakamoto, an anonymous person or group. It has long strings of numbers and letters inked through an encryption algorithm. Customers can use the bitcoins to buy products and use services on different websites only if they accept them. It can be broken up to eight decimal points.

Currently, there are some $15 million of bitcoins in existence which were $11 million in 2012. One bitcoin is worth around $460 while a XGC is equal to around $1.09 currently.

Till date, there is no website in India that accepts Bitcoins. However, using the Bitcoins is not illegal in India but there is not such regulations made for it by now. In the countries like Iceland, Bolivia, Ecuador, Kyrgyzstan and Vietnam have some kind of ban on it.

“There are around 5,000 active Bitcoin users in India currently,” Doctor further added.

Apart from Bitcoin and XGC, some of the other cryptocurrencies include Namecoin, Litecoin and PPCoin. Namecoin was the first fork of Bitcoin and still is one of the most innovative altcoins.

Since the launch of Bitcoins, the segment is achieving huge growth and many companies have starting exploring opportunities in it which either raised funding or in the process of it.

They include ZebPay which recently got $1m Series A funding led by growth equity investor Arjun Handa, vice president of Claris Life Sciences; Unocoin, a Bangalore-based bitcoin company that allows users to buy, sell and store the virtual currency, raised $250k from
Bitcoin Opportunity Corp; Hyderabad-based BTCXIndia.com; Bangalore-based Igot.com and seed-funded Coinsecure.

In a recent report, Reserve Bank of India said, “the key technical concept of ‘blockchain’ can help check counterfeiting.” Notably, in December 2013, the RBI had cautioned users, holders and traders of virtual currencies including bitcoins, about the potential financial, operational, legal, customer protection and security-related risks.

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