Cyprus Securities and Exchange Commission (CySEC) regulated foreign exchange brokerage service provider FXPRIMUS has announced that it would be accepting Bitcoin deposits and funding in partnership with BitPay.
Before accepting Bitcoin, FXPRIMUS previously accepted funding via bank wire transfer, Cash-U, ClickandBuy, credit/debit cards, and, Skrill among other payment methods.
“Since obtaining our European jurisdictional regulation with CySEC, we have extended the scope of our operations – as well as our range of tradable instruments – in order to offer a cutting-edge service within the context of a safe and ethical trading environment,” said FXPRIMUS in a blog post on its website. “The company [FXPRIMUS] has engaged third-party payments processor BitPay to manage the transactions, and who are experienced in managing high-volume Bitcoin transactions for Neteller, Adyen, Microsoft, and others,” added the post.
Among the regulated Forex brokerage service providers, FXPRIMUS would be one of the first brokers to introduce funding via Bitcoin.
Commenting on the initiative, CEO & Director of FXPRIMUS, Terry Thompson commented that “with security at the forefront of our operations here at FXPRIMUS, we are now delighted to announce the appointment of BitPay – an experienced and established provider of the virtual currencies.”
Global Forex market is the largest unregulated market in the world with a daily transaction volume of over US$ 5.3 trillion. Forex trading has become very popular in the last decade as a number of brokers made it easier for regular folks to invest and speculate in the market.
However, in a lot of countries, trading foreign currency is against the law, as it involves trading with high leverage and market prices are extremely volatile, making it appears “speculation” in the eyes of the government of several countries. In the United States, foreign exchange trading is highly regulated and foreign brokers must comply with SEC regulations in order to accept clients from the US.
Although FXPRIMUS is regulated by the CySEC, it also does not accept clients from the United States. However, the company did not clarify if accepting Bitcoin would create a loophole where clients from US would be able to deposit funds via Bitcoin as it is virtually impossible to trace the origins of the Bitcoin transaction.