Coinfloor , a new venture capital-backed exchange for the Bitcoin has been launched in London, despite the fact that online currency is not classified as money by UK financial sector regulator the Financial Conduct Authority (FCA).
As of 29 October users can create accounts and register, while Bitcoin trading will commence on 5 November. Coinfloor employs electronic anti-money laundering (AML) and know-your-customer (KYC) procedures and engages both with the FCA – although it is not an FCA-regulated entity – and Europe’s payment services regulations in order to reassure potential users of the security and legitimacy of the platform.
“We believe users and traders deserve a trustworthy [Bitcoin] exchange on which to conduct their business,” said the company’s co-founder and chief executive officer (CEO), Mark Lamb. “From the start, we’ve been committed to building and operating Coinfloor as a fully-compliant and professional financial services company and we look forward to helping to establish Bitcoin as a mass market asset.”
Coinfloor , which will initially take trades from the UK and Europe, opens a week before trading gets underway to give customers time to have their accounts approved as the electronic and manual KYC and AML checks may take up to 48 hours.
Coinfloor stated that while it is not FCA-regulated “However, we pride ourselves on our compliance even in the absence of regulatory guidance, and look forward to a point in the future when Her Majesty’s Revenue and Customs [HMRC] and FCA may choose to regulate Bitcoin as a currency as we would be ready and confident about our immediate compliance.
“We believe that the creation of a formal regulatory regime for Bitcoin businesses (whether under the current payment services regime or under a new regime for decentralised currencies) would benefit the UK economy and in particular the financial technology [fintech] sector.”
The exchange incorporates a rounding algorithm and pricing schedule for frees in order to make it appealing to high-frequency traders. It has also developed tools to make it easy for small businesses to accept Bitcoin as a currency.
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