Bitstamp, a regulated Bitcoin Exchange in Luxembourg (Europe), has jumpstarted a web-based investment campaign and opened this to eligible investors. Funds obtained will be utilized to step up development of additional products in a controlled and conforming environment. The new investment round for the standardized venue started at the Bnktothefuture.com investment platform last December 6 and schedule to close down on January 24 of 2017.
Bitstamp Granted License
Bitstamp launched its operations in 2011. The following year it passed one million transactions with $12 billion volume. The exchange received its first principal investment in 2014 ($10 million) in the form of seed-fund from Pantera Capital, a venture capitalist. Early this year, regulators granted Bitstamp a license that made it as a fully-regulated payment facility.
The chief executive officer of Bitstamp (Nejc Kodric) remarked that their company will continue to set a trend among virtual asset exchanges as it unveiled its investment program in Bnktothefuture.com. He reiterated the institution’s strong commitment to provide oversight and assurance clients, investors and financial technology stakeholders require from a virtual asset exchange.
Bitstamp is the first and only exchange for Bitcoin approved in 28 member-nations of the European Union. Bitstamp’s CEO acknowledged the present status of digital assets and the company’s immense responsibility as well as privilege in establishing this regulatory structure for a more transparent financial sector.
What is Bnktothefuture.com?
Bitstamp was able to consolidate the exchange’s position as leader in this industry. It did not adopt the approach of other Bitcoin exchanges which continue to offer non-compliant and uncertain services in environments that are not regulated. The exchange realized adoption of traditional approaches entail the necessary regulation.
Management of Bitstamp knew the financial industry needed a reliable exchange so it submitted itself to multiple audits, security checks and penetration tests for licensing as financial institution in all EU states. These were the requirements for providing safe and compliant environment for its clients’ assets frequently at the cost of providing out of the ordinary products and services.
Bnktothefuture.com is a global web investment platform (equity crowd funding) that permits qualified investors to put funds in financial technology and innovation corporations, finances and other alternative monetary commodities. It was put up by Simon and Bliss Dixon who were inspired by the exit of banks in the United Kingdom from small-scale business lending in 2012.
Largest International Trading Market
Bitstamp joined the biggest and most liquid trading marketplace in the whole world which is foreign exchange. It enabled trading for the US Dollar and Euro for its clients. Trading in the FOREX market reaches $5 trillion daily which dominates the futures and equities markets. This is an average of more than $200 billion per hour. FOREX covers all currencies worldwide although major currencies (USD, EUR, GBP, CAD, AUD, and JPY) stand out among the rest. The US dollar is included in most of currency transactions. The EUR/USD is the most traded currency pair in all exchanges.
Average day to day trading of EUR/USD is $241 which is almost two times than the next pair which is USD/JPY. In the midst of economic turmoil in 2015, the EUR/USD pair witnessed the heaviest volume going back to 2010. This emphasizes the importance of these two primary currencies. Bitstamp’s foray into the foreign exchange market for EUR/USD proves significant for virtual currencies. FOREX traders and other companies holding and transacting with the Euro and US Dollar have a new platform so they can have access to crypto-currencies.
In other words, clients of Bitstamp can use the exchange’s new trading pair (EUR/USD) freely. It facilitates better mobility of funds as well as new opportunities for arbitrage or simultaneous buying and selling of the same financial commodities or instruments in various markets. Arbitrage is the means to make instant profit minus all the risks.
Bitstamp charges a standard fee of 0.20 percent for EUR and USD trading. On the other hand, BTC/USD and BTC/EUR trading fees range from 0.10 to 0.25 percent. This depends on the currency volume being sold or purchased. Minimum trade for any currency in said platform is fixed at $5.
The license of Bitstamp to operate as payment provider in all EU countries allows it to serve a broader market even if it is not the first exchange for Bitcoin to initiate the all-fiat currency pair for trading. In the past, Bitstamp allowed Bitcoin buying through debit and credit cards for users in Italy and Germany during the early part of 2016.