Bitcoin exchange operator and GHash.io owner CEX.io has announced the public beta of its fiat currency integration, beginning with the US dollar.
CEX.io said that the new service, which will allow US dollar deposits via bank transfer or payment card, will eventually include other fiat currencies like the euro. In addition, the exchange plans on adding new trading pairs in the weeks ahead, including US dollar pairs for darkcoin and dogecoin.
The fiat integration is the latest service announcement to come out of the UK-based company, which launched a developer API last week and has been preparing to add new trading pairs since April.
CEX.io chief editor Helga Danova said that the fiat service would likely be expanded in the future as part of a broader overhaul of its exchange. The company told CoinDesk that, over the next year, it will be making significant investments in its exchange platform with an eye on targeting international investors and traders.
“We are planning to improve CEX.io as an exchange. After the workflow of USD and euro is aligned, we will support other fiat currencies as well. CNY is likely to follow up the path after supporting the euro.”
How it works
Like other platforms that allow USD deposits, CEX.io will be utilizing identity verification and two-factor security to support the new feature.
Though trading pairs will only feature USD for now, CEX.io said that any fiat currencies are acceptable for payment, saying:
“At the moment, these funds are automatically converted into USD for further trading and withdrawing funds. To avoid any possible issues and speed up the process, we recommend passing identity verification.”
According to the company, the process is as streamlined as possible, with fiat and digital currency management available.
Bridging currencies amid tough climate
By adding fiat currencies, CEX.io will join the list of exchanges that are likely to be targeted by whatever regulatory frameworks emerge from the discussions now taking place between policy makers and government officials worldwide.
The UK government is currently researching and developing a public policy stance toward digital currencies. Proposed regulatory frameworks like the BitLicense also point to the likelihood that fiat-handling exchanges will experience more oversight in the future, an idea supported by academics such as Google Asia public policy analyst Andy Yee.
Danova told CoinDesk that fiat integration wasn’t always easy, saying:
“Lots of traditional financial institutions have prejudices against bitcoin businesses, which is quite natural, but still creates timing barriers and delays with negotiations. The same goes with setting everything up according to legislation in different countries.”
She noted that conversations with regulators and payments companies continue to evolve and will no doubt impact future fiat rollouts.