The cryptocurrency exchange of Bitstamp has partnered with Dukascopy Bank to enable crypto funding for the clients of the bank. The bank is a leading Swiss online bank and its clients can now send Bitcoin (BTC) to their accounts and the crypto will be converted to US Dollars which they can use to trade on the Swiss FX Marketplace. The clients of Dukascopy can also withdrawn their funds back to the their crypto wallets in the form of BTC. Bitstamp will facilitate the conversion of fiat to Bitcoins and vis versa.
The announcement by the team at Bitstamp went on to explain why this partnership was vital for crypto adoption moving forward.
This partnership represents another step towards our goal of bridging the gap between crypto and traditional finance. It is further proof that our efforts in compliance and regulation continue to deliver results at a time of rapid maturation for the cryptocurrency industry.
More on Dukascopy’s New Service
The Geneva based Dukascopy bank offers traditional banking services as well as trading in cryptocurrencies (through CFDs), forex and binary option trading to retail and institutional investors. The bank explains that the financing of trading accounts using cryptocurrencies is subject to the following conditions:
- Deposits and withdrawals for trading accounts can only be financed with Bitcoin at the moment
- Once the BTC is transferred, it is immediately converted to USD by the bank and credited to the customer account
- When it comes to withdrawals, the USD amount from the customer account is converted to BTC and transferred to the Bitcoin wallet linked to the user’s account
- The base fiat currency is the USD
- The maximum cumulative net amount that can be deposited is $50,000 (the total amount deposited minus the total amount withdrawn)
- Bitcoin deposits are not processed instantly. Therefore, the trader must accept the possibility of losses due to the change in the BTC/USD rate during conversion
- Deposits and withdrawals of BTC will be process only during business days relating to the Canton of Geneva, Switzerland
As earlier mentioned, Dukascopy does not provide direct trading of cryptocurrencies. The bank’s clients can trade crypto through CFDs (Contract for Difference) based on the price movements of cryptocurrencies or their derivatives.
What are your thoughts on the partnership between Bitstamp and the Swiss online bank of Dukascopy? Is this an example of how modern banks should collaborate with crypto exchanges? Please let us know in the comment section below.
[Image courtesy of RT.com]
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