Coinsetter to raise $1.5 million for Further Expansion

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Coinsetter to raise $1.5 million for Further Expansion
Coinsetter to raise $1.5 million for Further Expansion

Coinsetter to raise $1.5 million for Further Expansion

Despite several hurdles coming from the Asian countries like China and India that issued guidelines recently about the use of Bitcoin by customers, the demand for Bitcoin has not yet diminished. Venture capitalists are eager to invest in startups as well as established Bitcoin companies; in the league is Coinsetter Inc., a Bitcoin trading platform.

Now, Coinsetter Inc. has filed an application with the U.S. Securities and Exchange Commission to raise $1.5 million. A lot of enthusiasm was seen among the venture capitalists that flocked for it. Nevertheless, the ambitious fundraising plans were disclosed in a filing with the U.S. Securities and Exchange Commission.

The Company Wants Even More

In his statement Jaron Lukasiewicz, Coinsetter’s chief executive officer, said that though currently the company plans to raise $1 million, it would not mind to bring in more as it is will need more funds for further expansion, particularly when Bitcoin is becoming popular every passing day despite prices falling to half in the same month from the highest $1200.

There is no dearth of venture investors who have been seeking out Bitcoin-related companies when the digital currency became a hit. One mega hit was Coinbase Inc., a provider of online Bitcoin accounts. This company raised $25 million earlier this month in funding led by Andreessen Horowitz.

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Coinsetter, the New York based company said that it is dedicated to making Bitcoin safe and easy to use for all its customers which are currently open only to friends and family. The major service it offers for customers is that it aggregates Bitcoin prices from multiple exchanges, and offers charting tools for market analysis and provides a trading system for them.

The company which earlier in April this year raised $500,000 from venture investors, majorly from SecondMarket Inc. CEO Barry Silbert’s Bitcoin Opportunity Fund, hopes that this time it will get better response. Though there were some issues earlier this year when Coinsetter along with 21 other digital-currency companies were subpoenaed by New York’s top banking regulator, things are quite easy for now.

Bitcoin which is facing challenges in China and India which could provide impetus to the digital currencies, has got a better reaction so far in the U.S., as the Treasury Department’s Financial Crimes Enforcement Network has said that Bitcoin businesses may be considered money transmitters for the purpose of complying with anti-money laundering laws.

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