Coinsetter Blames Bitcoin Compliance Costs for New Account Fees
New York-based bitcoin exchange Coinsetter has instituted a new $65-per-month account fee, a move it says is aimed at offsetting its compliance costs. In an email addressed to users and circulated on social media, Coinsetter told users that it was instituting the fee in a bid to "compensate for the increasing costs of holding bitcoin accounts in a US-based setting". The new fee is scheduled to go into effect on 1st December. When reached for comment, the exchange confirmed the new fee and that proceeds would be used to defray compliance costs. "The cost of maintaining smaller accounts is....
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New York City-based bitcoin exchange Coinsetter today announced a new program that will allow its user base to fund their account via Coinbase. This rebate program is only being offered to customers in the Untied States, and allows these traders to purchase bitcoins on Coinbase via an ACH transfer to fund their Coinsetter account. Coinsetter will then reimburse the trader for fees incurred on Coinbase's service, which has traditionally been 1 percent. The company writes (via their blog): We're excited about this program because it allows users to completely bypass interacting with....
Coinsetter introduced new features to its Platform. Bitcoin traders are now able to use Bitcoin Margin Trading, Shorting. Costumers, now have access to 5.0x leverage and shorting with interest-free margin. This Monday, the New York-based bitcoin exchange, announced the extension of margin trading capabilities to all of its users. Coinsetter users can trade with margin by posting collateral of as low as 20% of the margin balance added to an account. Collateral can be posted entirely in bitcoin if preferred, and margined positions do not accrue interest-a feature that is unique to....
Today brings the start of the World Cup - and an interesting announcement from New York City-based Coinsetter, a new bitcoin exchange aiming to make a splash in individual and institutional digital currency trading. The company has announced a partnership with LaunchKey - a company that specializes in accounts security and authentication - to bring something they have creatively called LaunchKey for Coinsetter: With LaunchKey's enterprise multifactor authentication platform, Coinsetter users now have a comprehensive solution that improves privacy and security through decentralization of....
Coinbase CEO Brian Armstrong argues that privacy advocates could gain the most from compliance since it will make them rich. But could non-compliance be even more lucrative for Bitcoin? Compliance Will Make Who Rich? Armstrong defines compliance as “working with regulators, law enforcement, banks, etc.” and touts the fact that as much as 20% of Coinbase....
Let's begin with a short thought experiment. Put yourself into a world in which banks charge $20 to $50 to manage an international wire transfer, but hardly make a profit on it. Conceptualize a world in which banks delay domestic ACH transfers up to three days, in a large part to reduce fraud risk. Imagine a world in which taking on just one new customer necessitates the hiring of another employee. If you're a commercial bank, these problems are likely all too real and familiar to you. Your costs are continuously rising, but your clearing and compliance infrastructure hasn't changed. Well....