The user will need to verify their name, address, social security number to receive a reference number which is vital to receive the Bitcoins. This information was sent out in an email by Xapo:
We’re proud to announce Xapo Deposit – a new feature that allows you to acquire bitcoins via wire transfer.
How it works
- Login to Xapo, click “deposit” and complete your deposit profile to receive your reference code
- Send a wire transfer of US Dollars or Euros to Xapo
- We convert your funds into bitcoins and deposit them directly into your Xapo Wallet
With this new feature, Xapo has come full circle in offering everything you need to purchase, transact and secure your bitcoins. Now, in addition to having the security of a fully insured Vault and the convenience of the world’s first bitcoin debit card, you can easily acquire bitcoins directly from Xapo.
Since bursting on the scene with a large financial backing, Xapo has faced a lot of heat from users when hidden fees were revealed on Xapo that were considered ‘standard’ for card suppliers. These fees contradicted Xapo’s statement that users would be charged a one time $15 fee for their card. Xapo later clarified that they would reimburse users for any third party fees they may face from the card supplier in the form of Bitcoin. Also in this announcement was the news that Xapo would not be shipping their cards to the United States or India. Many users in these countries had already signed up for Xapo and pre-ordered their cards months before this news was brought to light. In addition to the Bitcoin Debit Card, Xapo also acts as a Bitcoin wallet and vault. The wallet can be used to send payments to users by simply having their Bitcoin address, email, or name. The Vault service allows users to deposit their coins into a secure vault which is insured by Meridian Insurance, in exchange for a .12% annual fee.
Xapo’s new announcement of the ability to purchase Bitcoins with wire transfer With USD or Euros will allow users to use Xapo to purchase, spend, and securely store their Bitcoins. Once the wire transfer has gone through, Xapo converts the fiat currency into Bitcoins and credits them to the user’s ‘hot wallet’. Funds in the hot wallet can easily be moved into the vault for secure, insured storage.
Xapo’s announcement could put them back in a position to grow. After the revealing of the hidden fees and the announcement that the Bitcoin Debit Cards would not be shipping to the United States or India, Xapo lost a lot of support from the community. Xapo and other companies are still searching for a legal way to release cryptocurrency debit cards to these countries. Strict anti-money laundering and know your customer rules are currently inhibiting their ability to do so. Bitcoin debit cards could significantly increase Bitcoin’s adoption rate as long as the cards offer low fees and are secure.
Last modified (UTC): September 1, 2014 00:01