Author: Wang Yanhua
Two blockchain-based money transfer companies, Singapore-based Chynge and South Korea-based Moin are partnering to provide their services to Singaporeans.
Block Asia caught up with Chynge’s chief compliance officer Aaron Lee and Moin’s operation manager Joohyung Lee.
Joohyung told Block Asia, “Moin is the fastest remittance company in South Korea to use blockchain. We are already providing services in Japan and China, and we are soon moving into Singapore as we partner with Chynge.”
Aaron added, “Moin is a natural partner as we are both offering services in the same area. I think it’s really interesting because I really believe that we can add value to the industry that we are in.”
CHANGING A CENTURY-OLD INDUSTRY
As the world becomes increasingly globalised, immigrants are pouring into developed countries where many jobs pay higher rates than in their home markets. As they shuffle around the globe, many have family members and friends back home whom they continue to support through cross-border money transfers.
However, fees remain a huge pain point for immigrants sending money home.
Chynge and Moin are leveraging on blockchain to compete with the legacy firms on scale and fees. Aaron told Block Asia, “Nowadays the banks monopolise both the payment rails as well as the liquidity. Remittances are expensive and time consuming, and remittances of customers are mixed with those of criminals.”
He cited the manifold benefits of blockchain-based money transfers, “It’s instant, free, and safe. That’s the value-add we bring in disrupting the industry.”
PAVING THE WAY FORWARD
Joohyung shared with Block Asia about the intricacies of being a Korean blockchain company.
“The biggest challenge for Koreans is Korean regulations. They [the regulators] like blockchain but they don’t like cryptocurrency, so regulations are strict. After the elections I hope this can change,” he said.
While regulations in Singapore are generally more favourable towards blockchain companies, Aaron feels that in the money remittance field, regulations need to be updated.
He told Block Asia, “Regulations are now geared towards banks, so we need to work with regulators to ensure that the industry is well-regulated and risks are managed.”
New blockchain-based money transfer startups are competing with banks in providing remittance services. But they still have to collaborate with each other, which makes for an interesting relationship, Aaron revealed.
“The banks are watching us very carefully. For the time being the money we move still needs to end up in the banks, so we work with them. They know that we’re trying to disrupt the industry, but blockchain is an unstoppable force,” Aaron said.
You can find out more about Chynge and Moin on their websites: