UK's Largest Bitcoin Exchange Launches Coinfloor Market
02 Jul, 2015, 06:00 BST
LONDON, July 2, 2015 /PRNewswire/ --
London's bitcoin exchange launches the world's first exchange-backed peer to peer bitcoin marketplace, connecting consumers and investors with professional bitcoin brokers.
Coinfloor is announcing the launch of the world's first broker based bitcoin marketplace. Coinfloor Market offers UK retail investors and consumers the ability to buy bitcoins and gain exposure to digital currency innovation in a secure environment.
The announcement follows an event in London, where Coinfloor met with the UK's top bitcoin brokers in order to further adoption of the currency. The 21 founding members of Coinfloor Market signed a pledge committing to create a safe and accessible marketplace for bitcoin. The resulting Bitcoin Brokers' Agreement closely mirrors the Buttonwood Agreement that formed the foundation of the New York Stock Exchange, which initially faced similar challenges to today's bitcoin marketplaces.
Coinfloor CEO, Mark Lamb said, "Our founding members are key to the success of Coinfloor Market. Just as the NYSE was committed to a decentralised network of brokers backed by a centralised exchange, Coinfloor is the first institution in the Bitcoin industry to mirror this proven model."
Historically, investors and consumers looking to buy bitcoins in the UK have been deterred by the need to send funds internationally, deal with exchange rate risk and manage their own storage security. Coinfloor simplifies this process for bitcoin buyers by providing a direct and personal interface to a vetted Coinfloor Market Broker with local banking facilities. Prices are streamed directly from Coinfloor Exchange, which has grown to become the world's most liquid bitcoin to Sterling exchange. Bitcoins purchased on Coinfloor Market are automatically stored in Coinfloor's custodianship service which provides 100% cold storage, securing bitcoins with multiple encrypted keys stored in underground vaults.
Mark added, "Coinfloor Market and the introduction of professional bitcoin brokers is the next step for bitcoin's adoption. We are moving away from the 'Wild West' of Bitcoin towards safe and accessible structures. Coinfloor's Brokers join us in leading the Bitcoin industry in pursuing professionalism and focussing on trust and innovation that will accelerate the growth of the Bitcoin network."
Peter Wood, known in the market as y3peto, one of Coinfloor Market's professional brokers, said "Coinfloor Market is now the most secure space to purchase bitcoins. My customers want a fair price, a secure transaction and a safe place to store their bitcoins. Coinfloor Market provides that and I'm looking forward to building my business here. It gives me the well deserved recognition for my work as a bitcoin broker in the UK."
The announcement follows Coinfloor's recent partnership with LHV Bank and its 15th monthly blockchain-based audit of client bitcoins, giving the company the longest running and most transparent audit record in the Bitcoin industry.
Background on Coinfloor
Coinfloor has led the UK's Bitcoin industry as the most trusted, secure and reliable bitcoin exchange. Founded in early 2013 by digital currency entrepreneur Mark Lamb and dot-com veteran technologist Obi Nwosu, Coinfloor attracted funding from Passion Capital, Transferwise co-founder Taavet Hinrikus and the former commodities boss Adam Knight, who built the joint venture between Credit Suisse and Glencore and was MD of Goldman Sachs' commodities trading. Adam is also Coinfloor's Chairman.
FAQ:
Q. How did the idea for Coinfloor Market originate?
A. We have been analysing the challenges for bitcoin adoption since the very beginning of our engagement in the industry. We discussed with various brokers, consumers and retail investors and found that everyone benefits from a broker-exchange model. Consumers and retail investors get a more personal quality of service, local payments in the UK and faster transactions. Brokers no longer need to focus on sourcing liquidity and can focus on improving their service and expanding their business. Coinfloor Market also eliminates the exchange rate risk associated with keeping multiple currency accounts. These benefits all emerge from the trust, security and reliability that Coinfloor has built over the past 2 years.
Q. What is the vetting process for Coinfloor Market Brokers?
A. We maintain a high level of quality through close relationships with our Brokers. We meet all our Brokers and verify that they have a long and established track record of brokering bitcoin trades. We also take steps to ensure professional conduct on the platform and are able to resolve any disputes since we hold bitcoins in escrow for the person buying from our Broker. We will be refining our vetting criteria over time and continuing to maintain close relationships with all of our Brokers.
Q. How does Coinfloor see Bitcoin evolving over time?
A. This year, bitcoin trading has seen declining volumes across all the major automated exchanges and increasing volumes from consumer and investor focussed brokers. We think that bitcoin will continue to be adopted by retail investors and consumers as an investment asset and a payment product for financial inclusion. People want Bitcoin, but they want it through a readily-available broker that they can relate to.
SOURCE Coinfloor