Bitstamp, one of the largest cryptocurrency exchange of European Union will release support for British pounds denominated funding by the end of this year. In the recent partnership with BCB Group, a digital asset brokerage firm, the Bitstamp platform is working on offering users Pound Sterling deposits and withdrawals.
With this partnership, Bitstamp joins the league of leading GBP processing cryptocurrency exchanges like Coinbase, Kraken, and Coinfloor. BCB Group is a Financial Conduct Authority (FCA) regulated financial services enterprise whose prime focus is on brokerage for institutional markets. Bitstamp will be using segregated client accounts set up by BCB.
The partnership enables United Kingdom-based investors to use the Bitstamp accounts for direct GBP withdrawals and deposits. In a statement to the press, Oliver von Landsberg-Sadie, BCB Group founder and CEO said that the Bitstamp partnership is a move to build a seamless and robust infrastructure for digital asset holders where they can trade and settle in a compliant manner.
A BCB spokesperson shared his viewpoint about the partnership as a strategic move by Bitstamp to increase the liquidity channels on the exchange. Earlier Bitstamp offered EUR and USD support as these markets have deeper liquidity as compared to British pounds sterling (GBP). But with the changing market dynamics, GBP is being adopted by many crypto exchanges and this step makes more sense now to stay ahead of the competition and keep matching the expectations of GBP clients.
While speaking to the press, a Bitstamp representative expressed the UK customers had to exchange their GBP’s into EUR or USD before making a deposit to Bitstamp exchange account and this was costing both time and money. The firm supports international bank transfers like accepting fiat in the form of Australian dollars, Japanese yen, and Swiss francs but it requires all these funds to be converted to USD or EUR.
In a statement made by Oliver, the integration of BCB technology tool into Bitstamp will make it easy for the UK customers to make transactions with Bitstamp onshore with the native currency support.
After the Brexit deadline delay until Halloween on 31st October 2019, the partnership is a favorable step for the customers in the U.K. who can execute fiat transfers on Bitstamp. This partnership is a part of Bitstamp’s global expansion strategy.
Early this year Bitstamp partnered with Dukascopy, a major Swiss online bank and by spring it had secured BitLicense from New York Department of Financial Services.
Coinbase recently introduced GBP direct deposits and withdrawals and this month imposed 1,000 GBP as the minimum deposit for the customers from the U.K. This step has been taken as the Faster Payments settlement system has been suspended for fiat fund transfer and SWIFT are being used.
In the announcement by Bitstamp, there is no indication that the platform will add any GBP trading pairs and it only talks about the deposit and withdrawal in GBP. The feature is under development and the UK Bitstamp platform users need to wait for another 5 months to start using it.