Coinizy Financial Services Inc., a digital currency exchange service based in Vancouver, has brought to market the world’s first Bitcoin-to-Paypal conversion service. Most of the popular Bitcoin exchanges such as Bitfinex and Bitstamp, only offer wire transfers, which usually take several days to clear. The Coinizy Paypal option allows customers to convert their bitcoin holdings into fiat, in less than 24h.
The platform also offers several alternative withdrawal options such as Western Union, SWIFT and virtual/physical debit cards. Coinizy doesn’t deal with fiat/bitcoin directly, but instead uses Snapcard to clear trades. Paypal transactions are also not directly processed by Coinizy, but are routed to an intermediary financial institution in Hong Kong, which handles the PayPal transactions for Coinizy.
Coinizy was granted an MSB license by FinTrac, Canada’s financial regulator, and is currently one of the few licensed one-way bitcoin exchanges in the country. The exchange also doesn’t require any AML/KYC documentation for transactions under $2500 in bitcoin.
Yannick Losbar, founder of Coinizy, previously operated a “Mobile phone credit to Paypal” service called NoelCash, which was sold in 2014. Yanick views the current “wire-only” payment option by other exchanges as restrictive and not very conducive for the future growth of the digital currency economy.
“Up until now, 99% of the Bitcoin exchanges only offered the good old wire transfer, when one wanted to withdraw the funds he obtained by converting some bitcoins. This excludes de facto the 2.5bn unbanked people, as well as most of the teenagers, which is very unfortunate since this part of the population could represent the next potential wave of Bitcoin adopters.”
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