Current Situation

I apologize for the long delays from withdrawals and distribution of XNF to those customers that are involved with the Japanese distributor.

We stand by our position, the Japanese distributor committed fraud. Our funds are frozen, more over, your funds are frozen. I have proposed the distributor to show the proof of purchase of all his clients and their KYC, so that we may distribute the XNFs directly, but he refuses to provide this information. This is the only accommodation we can make after he committed fraud and broke our distribution agreement. We are being more than reasonable to request this information, so that the right people, if they exist, may get their XNFs, as well as being able to gain access to the frozen funds.

When will withdrawals be possible? 

We are making our case in court on the 17th of this month. I firmly believe that not long after that we will gain access to at least some of the funds and this will allow for us to cover all pending withdrawals.

I was attempting to trick the Japanese Distributor into admitting their guilt, I pretended to offer them a sweet deal and then I took the conversation over to a secret chat in Telegram where I thought he would feel safe. It id not go anywhere however. It has come to my knowledge that some of the people behind them are the same as the ones that were scamming old Japanese customers into buying XRPs for over one dollar last year.

The way to fix this is simple: To all Japanese customers, please contact us with the proof of purchase and your KYCs so that we may be able to provide you with what is rightly yours. I have been asking the Japanese distributor over and over for the same, but he refuses. He gives us the excuse that the documents are in Japanese, but we tell him that we have a translator. Quite frankly, I don't see a problem with why he would not want to provide the requested information from our part, it is not only legal, but mandatory by law, that is unless, he is hiding more than what we already know.

Official XNF announcement regarding XNF Japan closing

Due to serious non-compliance of our distributor agreement found during our audit a month ago, we have severed work relations with XNF Japan. We are currently investigating the unfair and fraudulent trading of XNFs by this distributor. At this moment and until further notice, XNF Japan does not have the right to sell any XNF, use the XNF name or represent the XNF company in any way, shape or form.

This is an unfortunate situation for all parties involved, specially for clients who have relied on the good XNF reputation to purchase XNF via XNF Japan. Please know that we are here to provide the support you need. 

We are hoping this investigation will soon be resolved. In the meanwhile, please contact us for any questions, concerns or just to make sure your account is "cleared". We recommend you get in touch with us via our support line at support@xnftrading.com.

Yours,

Robert Reyes

CEO

CHANGES TO XNFTrading.com

We have been requesting the authorities in the Dominican Republic to help us create the perfect environment for Digital Currency businesses with the right kind of regulations. We are looking forward to working together with the Chamber of Commerce and the Banking regulators (Super Intendencia de Bancos)  in order to create a home for our sector with clear rules that will allow any young DC startup set up shop and grow without much costs.

We have submitted ourselves as a test case and therefore some changes are taking place in XNFTrading.com, which are a direct outcome of this probation case. One of those changes are KYC are back and mandatory for all.

Some other changes are being implemented because we have new investors on board and together, we have mapped a clear road to where we are going. For the moment, that journey does not have Ripple and NXT in it, though that might change in the future.  Not to worry, we are allowing everyone holding Nofiatcoins to bring them home to XNFTrading.com.

XRP, Stellar and NXT orderbooks will disappear from XNFTrading.com. The values that will be traded on the platform will be XNF, USD, EUR and BTC.

We have also worked with our local bank in order to process wires and deposits in a timely manner and allow us to guarantee the 5 business days completion (provided they are made before 15:00 Dom. Rep. time). We have a dedicated staff at the bank that will make sure this is the case. the good news is that we no longer have to depend on third parties to process our customers' requests, we are in direct control with all new deposits made from today on.

For transparency sake, we are shipping all of our gold, which is currently in three different countries, to the Dominican Republic. We want to have an audit by latest spring time 2015. This audit will not only show the value of our gold but of all of our assets.

Other Updates:
-Arcarius Global is no longer part of our organization
-Aerapay will stop processing transactions for us
-After the audit, we will attach a weighted value of gold to each XNF

Channeling Big Volume

We are looking for a solution to channel the purchases from our partners through our order books. Since we launched XNFTrading 2.0, we have not ran big purchases through the platform. However, we do use the wallet system to credit the buyers, but the whole community is missing out on the demand that actually exist for XNF.

Why is it a difficult solution to implement?

The fact of the matter is that right now there is more demand on the buying side. If you look at the selling volume on XNFTrading.com, there is not enough to supply an investor that is buying 100K or 200K USD worth of XNF coins. These partners also get a discount and therefore abstain from going through secondary markets to get their Nofiatcoins. 

The Way Forward

Last week we encouraged one small partner to purchase his XNF coins directly on the markets (XNFTrading.com and the ripple network). I am sure everyone noticed the change and price stability this caused. The volume that you saw does not even represent 15% of the demand coming from our partners. So we are going to make these moves more often, at least once per month.

Update on Banking

A couple of weeks ago I wrote about the banking disaster that occurred when we moved our funds from Hong Kong to the Dominican Republic, because we thought it would be faster to process withdrawals for our clients. Reality hit us hard and we had to send the funds back to Hong Kong and then the protests broke out and the financial district came to a halt. That definitely caused more unexpected delays.  If you are unaware of what was happening, please visit this link.

Something that I want to point out, is that even when there is no ongoing revolution, banks are always trying to find an excuse to hold or kick back transactions. This is why we are working on creating our own financial institution. In the meantime, we want to promote the other gateways such as justcoin and ripplefox. Collaboration is always a great way forward.

“I'm not interested in preserving the status quo; I want to overthrow it.” Niccolo Machiavelli

It is great that digital currencies are taking banking to a new age. We are going from wiring money in days to just seconds and that is a great leap forward. No more asking for permission to have access to your own money and no more insane fees either. Banking as we know it will never be the same, thanks to bitcoin, ripple, nxt and all the brave souls that decided to push our digital generation through digital values, a step forward.

What about the current financial system? What about going from boom to bust every seven to ten years? Who is going to make sure that my Fluffycoin, Purplycoin or Lulucoin is going to preserve its buying power?

While digital and crypto currencies are changing Financial Technology (FinTech), most of them are trying to preserve the status quo by creating values out of thin air. It will be no different that when federal banks do it; the bubble will burst and many will get hurt, financially. It is as if we are in a war and instead of finding peace, we believe that upgrading our weapons will be the solution. Yes, sure, the side with the biggest guns will win the war, but that means that there is one side that is left hurting. Just like with the current financial system; every time there is a bubble, many are left broke but many end up wealthier. Money does not evaporate, it exchanges hands.

The temptation of wealth is just too irresistible, so irresistible in fact that we don't care to ask ourselves "where is the value coming from"? We just follow the mania and become another euphoric node in whatever network is promising us great returns. There are over 450 digital currencies available today with a collective market cap that tops six billion US dollars, yet less than 10 of these currencies could justify their value. Bubble anyone?

What will you be holding in your digital wallet when the bubble bursts? If you ask yourself "Where is the value coming from?" you might have a couple of XNF coins.

Change is needed, not technical ones but fundamental.

Banking Pains!

About three weeks ago, we transferred our banking from Hong Kong to Dominican Republic the change has caused a delay in a handful of transactions.

I want to explain the situation. First, there is no internet banking for international transactions, so we have to physically go to the bank to process the withdrawals. Then for one week straight we were being told that something was missing each time we did the transfer paperwork: The company seal, authorisation form to convert into foreign exchange (DOP/USD) and depositing form for the USD account.

We even had the bank come to our offices on the 2nd week and do the paperwork at our side, but that did not work either. The las message from the bank was yesterday, that all the transactions to China and Japan, needed an intermediary bank. So fine, we were going to try again, but guess what? we needed an authorisation letter from the company to be able to put the money back into the account! Money that was coming from our account needed our authorisation so that it would not stay in Limbo. This is insane. 

Lesson learned though. Banking will be done in Hong Kong until we find more reliable partner here. This is exactly what is wrong with the current banking system, there is too much red tape when you want to deal with your own money. Free to deposit but not so free to take out. Unfortunately, some of our clients are feeling the same about us at the moment. I assure you this is not the case. We will resolve this matter this week. We have sent funds to Hong Kong and will process withdrawals from there. We did not do this before, because of fear that we would end up sending the same transaction twice, from the Dominican bank and from Hong Kong. But now that we know the money is in Limbo and on the way back to our account in the Dominican Republic, we can go ahead and submit from Hong Kong.

Maybe this is a good time to bring this up: The Free Banking Initiative.

 

NOFIATCOIN JAPAN

I have been approached on Twitter by Crypto Currency Magazine in Japan, @CCMag_Japan, in regards to the Nofiatcoin website in Japan, xnfjapan.com. See below:

CryptoCurrencyMag ‏@CCMag_Japan  13h

@XNFCEO @NoFiatCoin many japanse think that your partner in japan is scam company. now many japanse selling XNF http://hope.2ch.net/test/read.cgi/cryptocoin/1407330914/l50 …

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The answer is No, not any more. That used to be us in Japan. Ikuo Nakayama was the team member on the ground in Japan, helping us get set up.  

The same publication informed us that many, in Japan, are doubting our 20% return on investment from our agriculture investment options. See below:

CryptoCurrencyMag ‏@CCMag_Japan  13h

@XNFCEO @NoFiatCoin And many japanse doubt your 20 return of investment option. maybe more detail is necessary.how you insure....

Since day one we have spoken, publicly, how we aim to create a perfect financial system, where no one has to lose, from real tangible assets and works. We are not there yet, but these agricultural investments were not merely an idea that popped into our heads, it is all part of reaching that goal.

I will address the insurance question at the same time that I provide more details into the agricultural investments.

We are planting (yes, we are, not a third party) specific crops that bare fruit at least twice a year. We do this to maximise the investments. Notice that the investment contracts pay after one year even though we get at least two crops per year. Why is that so?

Even after insuring the crops and paying for all the costs that are involved with each planting season, at the end of the year we actually net about 75% on the original money invested (collectively), give or take a couple of percentages to deal with miscellaneous costs. We offer our customer 20%, we will put 20% aside to purchase more assets (gold, farms, etc), and 20% we will placed into the XNF market (buying back XNF coins) to provide liquidity and ensure its growth. 10% will be used to support operations and costs with Tilmore Investments S.R.L. The last five percent is the room we give ourselves for unexpected costs.

When we first came to research agriculture in the Dominican Republic, we landed in the Department of Export & Investments (CEI-RD), where we were informed about which organisation we needed to form and which constitutions were the correct ones for our future company, in order to be able to bring foreign investments into the country. We were then passed onto the Ministry of Agriculture where we had access to guidance, studies, statistics, exporting contacts and information on the department that insures crops, AGRODOSA.  As it stands, it is a government effort reinsured by well known international organisations, such as SwissRe (Switzerland) Hannover Ruckruvershicherung A-G (Germany). These reinsurance entities are responsible for 75% of the insured money, the government is in charge of the rest.

Last week in Bavaro, on the 2nd of September, not too far away from our office in Punta Cana, there was a seminar held by the Ministry of Agriculture. A major topic was Agro Insurance and the plans to make a Universal Agro Insurance in the country for all the producers (farming). The participation of representatives from the major international reinsurance companies, gave validation to the plans which seem to already be in progress.

What we are building, together with every XNF supporter, is a self sustainable and tangible financial system. Not in codes or crypto fluff, but in real operations. The soil is real to me, for it incubates the food that feeds the world. Metals are real to me, because shinny or not, they have an industrial purpose.