Singapore-based LynPay Pte Ltd plans to tap into the apparently large Bitcoin and Ethereum community in Cambodia and offer its LynPay payment solutions.
“In Cambodia, lots of people including Chinese hold Bitcoins and Ethereum but they don’t have a way to utilise it. Therefore, we are offering a payment solution that is beneficial to merchants because they can receive cash,” said LynPay founder Az-Zahari Ahmad Kamil.
He said the Cambodian market offers ample opportunity for block chain technology to grow and for improvements in financial technology transactions.
LynPay is a transactional point of sales (POS) system for crytocurrency payments which enables Bitcoin, Ethereum and Lyn token holders to pay in hotels, school fees, and purchases.
Merchants would be able to receive cryptocurrency payments as the settlement is converted to US dollars through an exchange where Lyn Tokens would be traded.
He said with LynPay, moving currencies in the form of cryptocurrencies across borders is not a problem as it deals with digital assets.
“All one has to do is scan the quick response (QR) code and it would automatically change and payment (for the merchant) would be in US dollars. This is the first time there is such a settlement in Cambodia,” Az-Zahari told a press conference.
The company, which plans to launch LynPay with five POS machines in a pilot project in April, has two eco systems – online seller or e-commerce platform GoBuyBid.com and Philippines-based online gaming platform, RMPG Games that would start using the service in the first quarter next year.
Az-Zahari said the company would also offer two million Lyn Tokens, a cryptocurrency that would be going on international exchanges, and would be available to GoBuyBid and RMPG purchasers.
He noted that moving forward, GoBuyBid and RMPG would drive more traffic for LynPay as traction picks up, bumping up interest in Lyn Token.
“We issued five million Lyn Tokens but three million of that belongs to our team and private placement, leaving two million in circulation. The small supply and increased demand mean the price would definitely increase,” Az-Zahari added.
The company expects the tokens to fetch US$30 to US$50 per token in a year’s time, which is an eight to 10 times fold from its initial price of US$4 to US$5.
Asked about operating Lyn Token, a crytocurrency transaction that the central bank opposes, Az-Zahari mentioned that cryptocurrency is often not understood and that he is willing to sit down with banks and government bodies to explain how it can benefit the country in terms of economy and tourism.
“In Cambodia for example, should the government or banks understand and open up to digital asserts or cryptocurrencies, the government can actually account for the number of cryptocurrency holders in the country and tap on the fintech industry and wealth to possibly propel Cambodia’s economy further.
“We are collecting data on digital currency holders. The information would be handed over to the government to discuss the future of legalising crytocurrency transactions,” he said.
Asked about the ban, in terms of legality, he felt that his company was ‘not doing anything wrong’ as it is giving a solution to a withstanding problem in terms of utility.
“What we are doing is providing a full settlement service right down to the bank, so that merchants receive US dollars in their bank,” he said.
In June, National Bank of Cambodia, the Securities and Exchange Commission, and the General Commissariat of National Police warned against the sale and purchase of cryptocurrencies, describing it as ‘illegal’ and ‘dangerous’ because users are exposed to volatile prices and cybersecurity threats.
The agencies were concerned over the rise of digital currencies such as KH Coin, Suncoin, K Coin, One-Coin and Forex Coin often traded in the Kingdom.