Banking relationships for UK-based Bitcoin companies are still a massive struggle, to say the least. It should come as no surprise then that most of these companies are looking to secure a banking relationship outside of the United Kingdom. Coinfloor, one of the various UK-based Bitcoin exchanges, has partnered with Estonian bank LHV to handle user deposits.
Coinfloor – Trade Bitcoins With Confidence
Coinfloor has one simple goal; bridging the gap between Bitcoin and the current financial infrastructure. In order to do so, the company provides its users with a safe and secure platform, which is fully regulated and compliant. As a result, traders and investors get access to a liquid and transparent Bitcoin market.
While there are quite a few Bitcoin exchanges to be found in the United Kingdom, Coinfloor is the only one to use 100% multi-signature cold storage [according to their website]. Combine that with their superior exchange platform performance and being the first provably solvent Bitcoin exchange, and you can see why this company has made quite a name for itself.
In order to comply with all law requirements, Coinfloor users must complete a thorough identity verification process. Furthermore, two-factor authentication is a must if you want to make use of this Bitcoin exchange, which is something we will – hopefully – see implemented by more exchanges in the future.
Thanks to Coinfloor’s partnership with the Estonia-based LHV Bank, all client funds can be held in multiple fiat currencies – such as GBP, PLN, EUR and USD. All users’ funds in fiat currency are stored in LHV, which is one of Europe’s fastest growing and most innovative banks.
It is interesting to note this is not LHV Bank’s first venture into the world of Bitcoin and digital currency. In fact, the bank has signed a deal with US-based Bitcoin exchange Coinbase in September of 2014. Because of this deal between Coinbase & LHV, users in 13 European countries can now use the buying and selling services offered by this Bitcoin exchange.
“Services based on blockchain have the potential to change the world. We are very glad to start working with the Coinfloor team and helping them with reliable financial services in exploring this potential.” – Andres Kitter, Head of Retail at LHV Bank
Seeing as how Coinfloor takes regulation and compliance very seriously, the partnership with LHV Bank seems to be a good fit. Especially when you consider that LHV shows a keen interest in the blockchain technology which empowers digital currencies. In fact, LHV hopes to simplify bank services and make them more efficient than they are in their current form.