Transacting with various banking and fiat payment systems to date has proven difficult for the altcoin exchange Cryptsy, which wants to offer their users a seamless exchange between altcoins and fiat currencies such as USD. In order to do this, Cryptsy has entered into a contract with Vogogo which will provide the popular altcoin exchange with full risk management, security and compliance which might allow it to overcome the common hurdles facing businesses in this sector.
Asked for comment, Vogogo CEO Geoff Gordon said that
"We're incredibly excited about rapidly growing crypto companies like Cryptsy understanding the value of Vogogo and wanting to work with us. We look forward to helping them enhance and expand their service offering across the globe." Vogogo itself recently raised 8.5 Million in venture capital1.
Paul Vernon, who founded the Cryptsy exchange in May of 2013, said
"We are excited to begin offering a method of payment which makes it secure and easy for our users to buy and sell crypto currencies in our fiat markets."
This is the 2nd agreement Cryptsy has entered into in the past few weeks, previously signing an agreement with Australian Bitcoin company Digital CC Limited last month. In that joint venture, the 2 companies will launch digitalX Mintsy, a cloud mining service that will sell contracts called hashfracs, litefracs and xfracs with the added ability to trade the mining contracts between users in a secondary market.
This service is expected to launch as a beta in Q4, 2014 and will see Digital BTC provide the hardware and hashing power while Cryptsy will actively promote the services to their user base. As an additional sweetener, Cryptsy will receive US $250,000 of Digital BTC shares at a valuation of AU $0.30 per share2.