FAQ’s
What does Xago do?
Xago moves money into or out of crypto in just a few innovative steps enabling clients to send and receive money across borders quickly and securely.
What are cryptocurrencies?
Cryptocurrencies are digital tokens/coins that are accessed, verified, transacted and traded electronically by a community of users.
Who is Xago?
Xago is an established and highly credible crypto payment and trading company.
What types of cryptocurrencies are there?
There are over 2,000 types of cryptocurrencies with the top three being Bitcoin, Ether and XRP.
What is XRP?
XRP is an established cryptocurrency that is built on Ripple’s XRP ledger system that outperforms any other money transmission technologies.
Why should I choose Xago to trade crypto?
Xago is highly secure, credible, fast and cost effective. Xago works closely with the SA Reserve Bank to establish crypto regulations and trading in South Africa.
What does Xago charge for transactions?
Xago charges only 0.25% for each transaction.
Why does Xago trade with XRP and not Bitcoin?
XRP settles transactions in 3-5 seconds whereas Bitcoin takes over 15 minutes. During those 15+ minutes, the exchange rate can dramatically be affected.
Does Xago require South African clients to go through a FICA process?
Yes, Xago requires all South African clients to comply with the FICA process which includes producing a copy of your identity, proof of your address and SARS income tax number.
Does Xago require non-South African clients to go through a KYC process?
Yes, we require all non-South African clients to comply with the KYC process which includes producing a copy of your passport and proof of your address.
Xago’s Discretionary Allowances (XDA) Control Questions
Why does Xago have to report transactions to the official South African crypto regulators – IFWG?
Xago is a fully legally compliant company and subscribes to the laws of South Africa as well as the regulations set by the South African Reserve Bank. This includes exchange control regulations.
Why do I have to sign a Declaration Form?
On your first deposit into your Xago wallet, you will be requested, as part of South Africa’s exchange control regulations, to sign a Declaration Form to confirm that your deposit is your own source of funds and that you understand the implications of depositing these funds into your Xago account.
What is an XDA?
A Xago Discretionary Allowance (XDA) is an allowance of up to an overall limit of R1 million per calendar year, available to each South African adult resident (above 18 years old) which can be transferred out of the Republic of South Africa, without applying to the South African Revenue Service (SARS) for an additional allowance.
An overall limit of R10 million per calendar year, is available to South African taxpayers (above 18 years old) which can be transferred out of the Republic of South Africa. A SARS tax compliance status verification result must be obtained and provided to an Authorised Dealer before the funds can be transferred offshore.
What does “Limit” mean on my Account?
If you are a new Client, your account will be in a Limit state until you sign a Declaration Form as part of compliance with exchange control regulations.
If you are an existing Client, and your account is in Limit state, this is due to exchange control regulations. You are unable to buy XRP or send XZR as you have reached your annual SDA or FIA limit. You can still send, receive or sell XRP and withdraw or receive XZR.
How does Xago secure transactions?
Xago takes security extremely seriously. We do two factor authentication (2FA) on every transaction whether it is a payment, send, deposit, withdrawal, buy or sell, in order to make sure you are authorising the transaction.
When was Xago established?
Xago Technologies was established in September 2016 and operates from Cape Town, South Africa.
Who founded Xago?
There are three co-founders of Xago Technologies. Mark Chirnside, Jurgen Kuhnel and Sonya Kuhnel.
What is blockchain technology?
Blockchain is a technology that is a growing list of public records called blocks that are linked using cryptography. Each block is timestamped and cannot be altered. Cryptocurrencies use blockchain technology.
What makes cryptocurrencies different to traditional currencies?
Cryptocurrencies use ‘decentralized control’ in that they are not controlled by any one person or government.
Who are Xago’s partners?
Capitec Bank and Empowerment Capital through Imvelo Ventures, IFWG and SA Reserve Bank.
How to buy or sell XRP
We offer 3 different ways to place an order on our gateway:
Instant orders
An instant order is an order to buy or sell a specified quantity of XRP at the best available price from the existing orders on the order book.
An instant order may fill at a number of different prices based on the size of the instant order and the size of the existing orders on the order book at that time.
Watch the video here for more information.
Limit orders
A limit order is an order to buy or sell a specified quantity of XRP at a specified price. It allows you to set the price at which you want to buy or sell XRP.
Buy orders will only execute at the price you have specified or at a lower price. Sell orders will only execute at the price you have specified or a higher price.
If there is a difference in price between another order of any type, and it is a positive difference, the matching engine splits the difference 50/50 between the buyer and the seller. This ensures a positive outcome for both the buyer and seller.
If the order is not matched by buyers or sellers the order will not be executed and can be cancelled at any time.
Watch the video here for more information.
Pegged orders
A pegged order is an order to buy or sell a specified quantity of XRP at a specified percentage, which is pegged on an international USD XRP price.
Our matching engine will fill your order with any type of order that matches the pegged order.
If there is a difference in price between another order of any type, and it is a positive difference, the matching engine splits the difference 50/50 between the buyer and the seller. This ensures a positive outcome for both the buyer and seller.
Watch the video here for more information.
Can I sign up as an individual?
Xago predominantly works with businesses but we also welcome individuals to register on the gateway to buy and sell, send and receive XRP.
What about security?
We take security extremely seriously and while this sometimes may affect your user experience, we believe it is more important to safeguard your assets. We enforce 2 factor authentication on several actions such as signing in to your account, adding and managing beneficiaries, sending XRP and ZAR, depositing and withdrawing ZAR, in order to make sure YOU are authorising the transaction.
What are crypto assets?
According to SARB crypto assets, which are commonly referred to as cryptocurrencies, are digital representations or tokens that are accessed, verified, transacted and traded electronically by a community of users.
Do we require FICA?
Yes, we require all Xago customers to comply with FICA in order for us to maintain strict Know Your Customer (KYC) and Anti-Money Laundering (AML) standards. The process is different for individuals and businesses. We use a third-party service provider named DocFox to ensure that we comply with FICA through automatic sanctions screening and risk rating. On signing up for a Xago account you are able to immediately store, send and receive XRP. In order for you to buy and sell XRP and withdraw or deposit South African currency your will need to be fully verified. This process can take up to 2 business days.
How do I use 2 Factor Authentication (2FA)?
The first thing you need to do is to install the Google Authenticator app on your mobile device by visiting your Play or App Store.
For Android devices click here.
For iPhone, iPod Touch and iPad devices click here.
Use 2FA when creating an account:
Scan the QR/barcode with your phone using the Google Authenticator app or enter the code provided when prompted on the registration screen.
What are recovery codes?
Recovery codes are used to recover and restore your two-factor authentication in the case of you losing your mobile device or the deletion of your authenticator app from your phone. We provide you with 8 recovery codes, each of which can only be used once.
These codes look something like this:
When creating a Xago account your recovery codes will be displayed on the screen and you will be prompted to save these in a safe place.
These codes are an extra security measure to ensure the safety of your account.
PLEASE PRINT OR COPY THESE CODES TO A SAFE AND SECURE PLACE AS THESE ARE NECESSARY TO RECOVER YOUR ACCOUNT IF YOUR MOBILE DEVICE IS LOST, STOLEN OR YOUR AUTHENTICATOR APP WAS DELETED FROM YOUR PHONE.
We recommend using an app such as Dashlane (a browser extension) which allows you to store the recovery codes as a secure note.
If you are not able to find the codes please submit a ticket here so we can assist you further.
How are fees structured?
One of our key differentiators at Xago is our approach to fees. We take a more tailored approach to applying fees for transactions. If you place a buy/sell order on the platform, the approximate value of the transaction will be displayed which includes the transaction fee. The market is constantly changing and the pricing is continually updating and in order to match the buyers and sellers some minor variance in the quoted pricing might occur at the time of your order. All fees are included in this quoted price.
Our fees are as follows:
Trading fees:
Instant orders – buy/sell: 0.25% per trade
Limit orders – buy/sell: 0.25% per trade
Pegged orders – buy/sell: 0.25% per trade
Deposit fees:
Fiat (Rand) deposits: free
Withdrawal fees:
Rand withdrawal: R8.50
Send and Receive XRP fees:
Send XRP fees: 0.25% per send
Receive XRP fees: free
Send and Receive ZAR fees:
Send ZAR fees: 0.25% per send
Receive ZAR fees: free
What is a Gateway?
The Xago Gateway provides a way for money and other forms of value to move in and out of the XRP Ledger. We act as both an Issuing Gateway and a Private Exchange.
What is a Market Maker?
Market Makers play a key row within the ecosystem by providing liquidity of XRP and also helping to keep spreads low, adding utility and reducing cost for entities transacting on the Ripple XRP Ledger (XRPL).
To participate as a market maker please contact us directly on info@xago.io
Can we accept any digital asset?
Xago is an agnostic settlement platform and depending on the preference of the customer facing wallet, Xago will settle with the retailer in ZAR. Customers who sign-up directly with Xago can only pay in XRP.
Why we use the Ripple blockchain and XRP Ledger?
The Ripple blockchain is an enterprise solution built for settlement between participants and individuals. It is purpose-built to solve existing issues of slow, inefficient and costly money transfers, remittances and payments. The Ripple blockchain has its own native cryptocurrency, called XRP.
Here is how XRP differs from bitcoin and fiat:
Fiat currency Bitcoin (BTC) Ripple (XRP)
Transaction time 24 hours 10-40 mins 3-5 seconds
VISA transactions per second 72000 About 10 1,500 (scalable with payment channels)
Energy cost per transaction Negligible About 250kWh Negligible
Processing algorithm N/A Proof of work Consensus
What do I do if I lose my authenticator app?
If your have lost your mobile device or your authenticator app has been deleted, you can do the following to access your Xago account:
Use your recovery codes to restore your two-factor authentication
Note: You will need to use your recovery codes you saved or printed when you created your Xago account. They look something like this:
Using the Google Authenticator app:
a. Download and open the Google Authenticator app
b. Tap the “Begin” icon and add an account using the “Enter a provided key” option
c. Enter an account name, type in one of your recovery codes (that you have not used before) in the “Your key” field, keep the time-based option selected and tap the “Add” button
Using the Authy Authenticator app:
a. Download and open the Authy app
b. Enter your mobile number and verify it via phone call or SMS
c. Add an authenticator account using the “Enter key manually” option
d. Enter in one of your Xago recovery codes (that you have not used before) and tap “OK”
You have now successfully restored and recovered your 2FA and will be able to log into your Xago account.