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Dear Pundians,

Thank you for your time to participate in the Q4 2020 report video session.

For those who miss the livestream, you can catch the video here:

Here’s the agenda of report.

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Krishnan Sri Balan, Associate Counsel & Country Manager of Pundi X, is the special guest of the Q4 report 2020 today.

Balan has worked at the Ministry of Defence and Ministry of Education as a defence analyst and performed several duties including the use of advanced technology for quantitative and qualitative analysis. He started advising Pundi X in 2019 when the Singapore Parliament first enacted the Payments Services Act of 2019. It is always a challenge to do pioneering work, but that is where his fulfillment lies. To learn more details about Balan’s compliance work for Pundi X and the process of applying for a License with MAS you can watch the live stream video.


XPOS is an ecosystem

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We have extended the XPOS from hardware devices to software deployments by partnering with the major point-of-sales companies including Verifone, Ingenico and PAX.

Anyone with an Android POS device powered by PAX cna simply download XPOS software in the PAX app store and instantly enable crypto payment along with VISA, Master card, Apple pay and SamSung pay. We are doing the same thing with Ingenico which is soon to launch its own app store.

As the XPOS hardware device remains the best crypto payment solution for physical retail stores, we are also spreading our wings to connect with these major POS companies to greater XPOS deployment.

We are also welcoming Arro social token to join Pundi X ecosystem not only as a distributor but also list its token on XPOS. Here is a list of tokens supported on XPOS platform.

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Distributor Portal

The distributor portal is custom made for our distributors. Much effort has been taken into perfecting the system and providing better services to our distributors and merchants. In Q4 2020, we have enabled the commission break-down functionality; in Q3 2020, we have enabled on-chain deposit and in Q4 we have added a new feature which allows distributors to deposit DAI using their local fiat currency (for now only GBP and EUR available) on XPOS.

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We also have merchant portal to provide services to regular XPOS merchants:

Japanese language is now supported in XWallet.

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Listed Exchanges

NPXS is listed in more than 25 Exchanges. In Q4 2020, we are listed in NovaDAX, which is a top 3 Exchange in Brazil. NPXS and FX are also listed in several dex Exchanges, such as UniSwap.

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Our liquidity will keep strong in 2021 and we expect it to grow even further in the realm of decentralized Exchanges.

Videos in Pundi X YouTube Channel

We have more than 100 videos produced for unboarding merchants and helping users to understand how to use XWallet and XPOS. It serves as an important channel for merchants and users to learn about Pundi X products.

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XPOS merchants and users

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2020 has been a challenging year because of the pandemic. The lockdowns everywhere have limited our team to reach out to more users and potential customers. However, the fact that we managed to keep growing this year shows the amount of efforts our distributors have given.

We have seen quite a growth in North America, the new activations of devices are not just the XPOS but also XPOS software enabled in PAX.

In Spain, Legantel Telecommunication company has activated XPOS as a means to accept payments in crypto currencies.

These are just two examples of the dedications our merchants and distributors have put into XPOS activation and adoption. We especially appreciate their efforts during this difficult time for everyone. We believe that in 2021 there will be more rollout.

In Q4 2020, the countries that have the most transactions and the tokens being bought the most are as follows:

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As for the countries where the crypto payments are most active are:

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The countries where the XWallet has the most growth are:

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More interesting numbers to share with you all:

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We have received comments about our strict onboarding process. In Q4, we have optimized the process in hope to give an even better user experience for all of you. The strong compliance also gives our users a peace of mind as we see more and more governments giving out strict regulations regarding crypto, we’d like to make sure that Pundi X and our merchants are all following the rules and under safe protections.

Events & Marketing

Most of the events in 2020 have shifted to online events. We have joined BlockchainJam 2020 which was held in Japan and had quite an exposure of our services. We also joined the Upbit Developer Conference in South Korea. Big shoutout to our team members Nanna in Japan and Melissa in South Korea.

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More virtual events were involved. Zac has joined the Indonesian Blockchain Conference as the moderator to discuss the development of DeFi. We have also participated in the Singapore FinTech Festival’s virtual event with Balan speaking about MAS Licensing for FinTech Companies in Singapore.

Peko was invited to share our experience in African markets at the GTR Africa 2020 virtual event. We have distributors in Ghana and Uganda who are trying to push XPOS deployment in Africa.

The last event we joined in 2020 is an actual event held in Taiwan. Our team showcased the XPOS device to the mayor of Taipei City and helped him experience bitcoin transaction via XPOS with XPASS. Even though 2020 is a challenging year, we are still pushing and making ourselves seen nonetheless.

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Compliance & Partners

Pundi X started preparing for the license application in January 2019 when the Payment Services Act was first enacted. The act came into force 1 year later in January 2020.

So, between 2019–2020 there was a year-long consultation process, with many actors, including The Monetary Authority of Singapore (MAS), Singapore Fintech Association(SFA), Association of Cryptocurrency Companies of Singapore.

These consultations were important because they provided us with the much needed insights on how Pundi X’s internal policies, procedures are to evolve to remain compliant with the laws and guidelines.

As customers of Pundi X, many would remember the new KYC procedures that we implemented in July 2020. What you have experienced was a result of new standards that were introduced by the central bank here, which refers to the MAS . And in so doing, the MAS has effectively imposed banking standards on crypto payments providers like Pundi X.

As for the application status, we are still waiting to be interviewed by the officers of MAS. The licence will only be granted after we get through this interview stage.

A related question is: Why Singapore?

Pundi X’s mission is to bring about mass adoption of the use of cryptocurrency. Singapore is one of the strategic jurisdictions to achieve this goal with it’s laws that are progressive and facilitative for innovation. And it is one of the leading countries in the world to provide a comprehensive legal and regulatory framework for companies like Pundi X to operate. It is also a hub for many great minds to meet and share their best practices and experiences, which translates into better products and services.

The compliance framework is largely defined by the Singapore law and guidelines.

We have put in place several initiatives and refined the KYC onboarding processes. We have also engaged with several third party service providers to perform screening requirements as required under the act and subscribed to the services of Merkel Science, which is a transacting monitoring tool.

In light of these developments, another related question to ask is: How would the crypto compliance landscape be in 2021 and how Pundi X will navigate to expand the business?

Many countries are beginning to introduce laws to regulate crypto companies. Singapore was one of the first to introduce the Payment Services Act and we see many other countries are going in this direction.

3 months advising a crypto company is equivalent to 3 years in a regular one. That’s the speed of development and 2021 is not likely to be different.

In this regard, navigation and growth has to take place compliantly. There are no 2 ways about it. With governments around the world paying greater attention to crypto currency as a result of the recent trends and the bullishiness of BTC. This being the case, Pundi X has to navigate the global regulatory developments to pursue its expansion goals.

While the bank has about a decade to complete the merchant onboarding process, we in the crypto space have about a year to catch up. The learning curve is very steep and comes at a very fast pace. We are starting fresh and many tools are not geared. Therefore, we have to be innovated to come up with our own policies and procedures to remain compliant and at the same time ensuring the user experience is not compromised. We are getting there, and we are the pioneer in this field.

Function X

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The Function X roadmap contains three major pillars. The first pillar is Payment, which is to facilitate our wallet and XPOS point-of-sales system to move onto the FX ecosystem and to be powered by FX Core. In other words, we will bring our wallet and XPOS system on-chain. In that sense, all the transactions made in the XPOS system will be seen on the FX Explorer.

The reason behind this is to create the first use case for Function X blockchain using our own products. So far in the blockchain world, we haven’t seen any financial facility putting everything on the blockchain, yet we are doing it as the first.

The second pillar is the Blockchain. FX Core, which is Function X mainnet, is the backbone to connect all the various chains that you’re using. Anyone can create their private blockchain using our service, and connect the private chain to the outside world via FX Core. To be able to do so, the private chain owners must stake FX tokens to get the chain powered, and once the private chain is connected to FX Core, FX tokens are also needed as transaction fees.

Those of you who have participated in Testnet 1, 2 and now 3 have experienced how easy it is to create a private chain using FX Cloud. We anticipate that as we launch the mainnet, people will come to create their private chains with their own token, own rules without any coding skills needed.

We are sorry to say that due to the effect of pandemic, the production of BoB is delayed. From the beginning, we want to work with the big mobile phone companies to build stronger and better hardware powered by our ecosystem. This is still a very important part in our second pillar.

The third pillar is the De-Fi. We are fully aware of the importance of De-Fi and we are building it with caution. We want to build a sustainable product so that the NPXS and FX token holders can truly benefit from this. It is not launch ready yet, but the framework of our synthetic asset platform is built and we expect to launch it soon.

Naturally, with a blockchain and the entrance to De-Fi, we will need to have a decentralized Exchange to be able to trade FX tokens and the synthetic assets on the Function X blockchain.

Testnet 3.0

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In Testnet 1.0, we have shown users how easy it is to set up a validator without coding background or hardware necessary. In Testnet 2.0, we took a step further to creating private chains. In Testnet 3.0, we introduced how to allow cross-chain functionality on your own private blockchain.

For more details: Function X: December Hash Out


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Q: Well-known corporations that joined the testnet 3.0 that wasn’t included on the screenshot that was shared.

A: There are several corporations that are testing Testnet 3.0 with us, but we are not able to share based on NDA (Non-disclosure Agreement). We will share as soon as we can.

Q: What was your biggest challenge yet? Are there big things like partnerships to look forward to?

A: Adoption and compliances.

Q: Is everything on Pundi X going to be open source?

A: Yes, we have started and if you look at our github it’s being populated, and we will increase the uploads.

Q: Are you planning to have a functional iOS version of fx wallet shortly?

A: Yes, definitely.

Q: What is the punishment management aka penalty of the validator?

A: We are still finalizing the rules.

Q: Is the Function X blockchain compatible with CBDC?

A: Awaiting more information on CBDC support.

Q: When will XPOS start accepting MasterCard?

A: It is already enabled with the support of PAX pos devices.

Q: Will there be any limitations to blockchains that can connect to XPOS payment network?

A: We will continue to support ERC-20 tokens and also the various blockchains.

Q: Will you support BTC blockchain on Function X?

A: Yes, we will.

Q: How many token burn per transaction?

A: We will share the details and stick to the agenda that NPXS and FX token holders should benefit from this growth.

Q: Any update for PayPal and eBay?

A: PayPal app has been included on XPOS.

Q: Where do you see NPXS in the next 5 years and what would you like to accomplish?

A: The long-tern delivery is to deliver a successful business model and distribution model to really get NPXS growing. What we want to achieve in the next five years is to build a business around NPXS and FX in a decentralized manner.

Q: What is the greatest challenge yet? (answered by Balan)

A: We have experienced the rapid change from being in an unregulated space to a heavily regulated space. It is not a challenge to be addressed by us, but the industry and community altogether.

This relates to the question of punishment management . I think in the spirit of blockchain, we are more towards a reward-oriented organization as opposed to punishing the users. The whole is to be a self-regulated community to have a more positive experience.

Token Removal

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In support of our merchants during the pandemic, we have decided not to conduct token removal for fees in 2020. Thank you to all the token holders for standing with our decision.

In Q4 2020, we are able to remove 27,947,281.50 NPXS and 17,713,065.74 NPXSXEM from the total supply permanently. It will be executed on Jan 16, 2021.

We will resume token removal on fees we will collect in 2021.

Staking of NPXS and FX

Many of you have been asking, and here we are.

Although the schedule is uncertain yet, there will be prestaking and staking of NPXS and FX in the mainnet.

What is important for us now is to get the mainnet ready. Once the mainnet is on, many of these will fall into places.

We are doing a lot of work to get real adoption of XPOS and XWallet in different markets of the world. We are also putting a lot of effort behind the scene in compliance and strengthening partnerships with big corporations. Our tech team is literally burning the midnight oil to build the mainnet. It will be very exciting when mainnet launches, the mainnet will benefit NPXS and FX token holders tremendously.

Looking forward to a great 2021 for everyone.

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Stay safe, stay vigilant.