Honk-Kong based Gatecoin Limited launches new Bitcoin exchange with "bank-grade security measures," including segregated client bank accounts, multi-signature cold storage, as well as continuous monitoring and audit from an external IT security firm, the company announced.
"Segregated bank accounts means that there are two accounts within the same bank under Gatecoin’s name; one operating to collect fees and process operating expenses, and the other to collect and store clients’ deposits, as well as process withdrawals," Inggrid Yonata, PR and communications manager at Gatecoin, told CoinTelegraph.
"Clients' cash deposits are protected from anything related to operational failures resulting from mismanagement or potential fines from regulators. Basically, clients’ funds will not be touched or used as part of the operational expense account."
“Segregated client bank accounts dramatically minimize counterparty risks,” said Gatecoin CEO Aurélien Menant, “and while it is common practice within the forex industry, it is still non-existent in the crypto space.”
"This feature implies cooperative and transparent relationships with our banking partner, which is very hard to reach as a Bitcoin exchange, because banks are very reluctant to accept this official corporate account setup for Bitcoin exchanges," Yonata said.
Incubated by the Hong Kong Science and Technology Parks and Tsinghua University, Gatecoin was built on solid ground to be in agreement with regulations. The startup operates with a Hong Kong Money Service Operator license, and is rigorously complying with AML/KYC rules. This compliance is exactly why their “banking partner agreed to provide us a unique banking structure in the Bitcoin exchange industry," she stated.
Founded in 2013, Gatecoin is a digital currency exchange platform that allows users to trade Bitcoin in USD, Euro, and HKD. The startup is planning to integrate Ripple into its trading platform in the next few weeks, and is currently offering 15 days of free trading for new users to celebrate its public launch.
Through its partnership with Bitcoin-approved Mastercard issuer Aerapay Limited, Gatecoin said it will be rolling out a white-labeled debit card "that can be used to shop anywhere in the world without incurring foreign transactions fees," and which is said to be "the first debit card that users can reload online instantly using bitcoins." Gatecoin will be operating the Bitcoin-loaded, white-labeled prepaid cards, which will be resold to merchants.
The company is looking to expand its business to the US and Europe, and is currently working on obtaining the proper licenses. Gatecoin's expansion plan for the coming months include providing new payment methods to reduce the price and delays for fiat currencies deposits and withdrawals, developing innovative digital currency trading services, and facilitating bitcoin spending.
The startup has already received US$150,000 of funding from angel investors, and is looking to raise more funds in the coming months.
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"Segregated bank accounts means that there are two accounts within the same bank under Gatecoin’s name; one operating to collect fees and process operating expenses, and the other to collect and store clients’ deposits, as well as process withdrawals," […]