Licensed Cryptocurrency Exchange Bitbank to Borrow and Loan Coins For Rewards
Japanese Exchange Bitbank Will Borrow Cryptocurrencies From Its Members
Cryptocurrency exchanges have been registering important gains in the last quarter, but it seems that they are still searching for more returns. An important Japanese crypto exchange, Bitbank, will be borrowing cryptocurrencies from its clients. At the moment, the company will be borrowing 1 BTC or more, but in the future other virtual currencies may be added, including Bitcoin Cash (BCH), Ripple (XRP), Ethereum (ETH), and Litecoin (LTC).
Bitbank Crypto Loans
Japan has decided to give licenses to different exchanges that are compliant with the regulatory framework in the country, and Bitbank is one of the 16 regulated platforms. Members with an account in the platform will be able to borrow their Bitcoins and receive an important return – calculated on 5% per year.
The company explained on Friday:
“‘Virtual Currency Lending’ is a service that allows customers to enter virtual currency lending transactions with Bitbank and receive up to 5% virtual currency per year. When we reach the expiration date of one year, we will reimburse by adding the specified usage fee to the virtual currency lent by customers in the month of offering.”
The virtual currency that has been lent by the client will be locked for the time specified at the moment of giving the loan. That means that the digital coin will not be available for trading or withdrawal. Once the loan period expires, the coin will be returned to the owner and the interest will be paid.
The minimum amount that the company will be borrowing is 1 Bitcoin, and the maximum 25. Bitbank will be paying 3 percent to borrow amounts smaller than 5 BTC, 4 percent for loans between 5 and 10 BTC; and 5% for 10 BTC or more. If the user decides to cancel the loan, fees will be applied (5%) with the applicable taxes.
This is not the first Japanese exchange that offers to its customers the possibility to borrow their currencies. Another fully-licensed platform known as GMO Coin, allows customers to earn 5% in 90 days for BTC and 150 days for other coins.