As Other Bitcoin Exchanges Struggle, itBit Catches New Customers

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As Other Bitcoin Exchanges Struggle, itBit Catches New Customers
As Other Bitcoin Exchanges Struggle, itBit Catches New Customers

As Other Bitcoin Exchanges Struggle, itBit Catches New Customers

Bitcoin exchanges like Bitstamp and Mt. Gox faced technical glitch and had to stop operation for some time. Though this unfortunate development brought misery for the two Bitcoin exchanges and a lot of trouble for their customers, the major beneficiary of the moment was itBit. This Singapore-based Bitcoin exchange capitalized the opportunity and gained a lot of new customers.

Also, to attract new customers, itBit waived some fees for its services. Currently, the Bitcoin exchange is offering newly-registered users with an initial deposit of $10,000 (£5,970, €7,300) or more a $50 trading fee credit.

Additionally, the users who are investing between $5,000 and $10,000 will receive $25 trading fee credit and $10 will be credited to their account with a deposit between $2,000 and $5,000.

Malleability Issue did not affect itBit as it has Cold Storage for Bitcoin

The Bitcoin exchange CEO Rich Teo said that his company has not been affected thanks to the way its wallet is built. He said that there was not an issue and all transactions were being processed well unlike some other Bitcoin exchanges that were affected by the transaction malleability issue that caused them to halt withdrawals on their sites.

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As Other Bitcoin Exchanges Struggle, itBit Catches New Customers

Rich Teo also admitted that the malleability issue is not a problem with Bitcoin or the Bitcoin software, but the way exchanges were watching the transaction for completeness. He says that itBit does not watch transactions in this way, and malleability of transactions does not affect deposits or withdrawals at itBit. Also, as it is storing Bitcoins offline, there is no risk of hacking.

The Bitcoin Exchange Aims to Attract New Customers

Rich Teo admits that itBit is currently attempting to get money transmitter business (MSB) licensing in the 48 U.S. states that require it and at the same time willing to attract new customers. However, currently, itBit is only accepting U.S. banking customers who reside in New Mexico or South Carolina as according to the company source these are jurisdictions where the state MSB licensure is not required.

Nonetheless, as the company says that an alternative for customers in the U.S. is to wire itBit money from an offshore bank account won’t be charged for their withdrawal or any transaction. Also, itBit has brought in several incentives for Bitcoiners and asks them to switch their Bitcoin exchanges. Also, till now it has brought in a safe and secure wallet, and it says it can be trusted.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com