Although it is always positive to see trading platforms integrate Bitcoin payments at some point, not every company will see as much success from doing so. Forex broker FxNet, which is based in Cyprus, has announced they will be removing Bitcoin from their list of supported trading instruments as of today. All open positions will remain active until they are closed, after which it will no longer be possible to use Bitcoin on the FxNet platform.
No More Bitcoin For FxNet Users
First of all, it is important to note FxNet did not make the decision due to a low trading volume in Bitcoin on their forex broker platform. Even though the addition of this modern digital currency was a bit of a gamble, users seemed to enjoy the experience of dabbling with digital currency as a CFD trading tool.
However, the unclear regulation of Bitcoin – is it a commodity or currency or something else? – Is casting serious doubts over the FxNet platform. Despite so many other forex brokers dealing with Bitcoin – including FxOpen and Plus500 – the Cyprus-based broker decided to remove the digital currency from their active listings as of today, March 29, 2016.
Keeping in mind how FxNet is regulated by the Cyprus Securities and Exchange Commission, the removal of Bitcoin as a supported trading tool could be a hint of things to come. At the time of writing, there were no concrete plans to change Bitcoin regulation in the region, although Cyprus might be looking at how Greece decided to label the digital currency over the coming months.
Moreover, the forex broker has obtained a specific license for this business activity, and depending on how Bitcoin is classified; additional licensing might be required. If the BitLicense proposal in New York is taken as a template, costs could ramp up rather quickly, making it far less financially viable to deal with digital currency altogether.
At the time of publication, it was unclear as to whether or not FxNet is open to letting Bitcoin make a return on the platform in the future. Once the regulatory status of Bitcoin is adjusted – which could happen soon – things might look vastly different for all forex brokers dealing with digital currency in the Cyprus region.
Source: SMN Weekly
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