New bitcoin exchange is about to be launched in Denmark, which promises future clients that it will provide a crime-free virtual currency trading environment.
The CCEDK Crypto Coins Exchange Denmark ApS is to be launched this month and will be open to the international market, Chief Executive Officer Ronny Boesing said. Digital currency users will be able to utilize the exchange in bitcoin and litecoin transactions. Exchanges will also be possible in Danish and Norwegian kroner, dollars, euros and the British pound.
But according to Bloomberg, safety is one of the core factors that will determine bitcoin’s future as a reliable payment method. The computer generated currency was touched in a money laundering scandal in January, when vice chairman of the Bitcoin Foundation Charlie Shrem was charged in the US for allegedly trying to sell the virtual currency to drug dealers. He dismissed the allegations in April and his trial will start in September.
“Our strongest selling point will be that clients will know where we are, that the jurisdiction is Danish and that there’s complete transparency. We link to our lawyer on our website in case anyone feels they need one,” said Boesing.
In December last year, the European Banking Authority warned against the use of bitcoin and other cryptocurrencies, citing lack of regulatory framework that would protect investors from losses should the online currency collapse or fail.
Boesing said the exchange was designed to operate as though it was already being regulated, saying there is a possibility of financial oversight in future for which CCEDK Crypto Coins was prepared.
Denmark’s Financial Supervisory Authority announced in December it would consider the call for regulation.
The exchange will set aside 30% of its earnings to create a fund that will cushion investors against fraud or crime-related losses, Bitcoinexaminer reported.
Boesing added that the only possibility of loss of money through the exchange will be bad investment but not criminal activity.
To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
To contact the reporter of this story; Deepak Tiwari at firstname.lastname@example.org