On 22nd of January our company has received a letter from Idea Bank informing us of the closure of our bank accounts within 15 days (although legally we should get 60 days’ notice). It is the 4th bank account closed for our company in the last 12 months. Some time ago we have taken the decision that we will not seek new bank accounts in case these ones are shut down, reason being that the constant bank account changes and lack of permanent stable solutions prevents us from developing our business with the speed we want.
Fiat operations timeline:
Fiat deposits and withdrawals will be operational until 1st of February. Please withdraw your fiat balances (RON, EUR, USD) before that day.
Starting the 1st of February, only bitcoin withdrawals will be possible
All remaining fiat balances will be converted on 1st of February to bitcoins and credited to the customers’ accounts. We will not be able to process fiat withdrawals, since we will not have a bank account.
This is an unusual situation for us, so please be prepared for withdrawals to take a bit longer than usual while we work on details around the bank accounts’ closure.
Our goal was always to develop a world class trading platform. In order to increase the volumes substantially some changes had to be made to the parameters of our system, mainly: fee reductions, API launch and substantial investments in marketing. All these actions require us to sacrifice short-term profit for long-term results. But having no trust in the long-term stability of our banking solutions, makes it irrational to sacrifice the short-term profitability for uncertain gains in the future. Short-term profitability requires an opposite set of parameters: high fees, savings on marketing costs and restrictions to the market engine through API.
For some time, we are working on launching a new type of exchange, completely decentralized and censorship resistant, without ties to the banking system. A product that in our view will be able to grow without friction from bureaucrats and will not be able to be stopped by persons who 1) have no understanding of the space and 2) have power to sign papers that can stop a business.
For us, this situation is a good one because it gives us the push to concentrate on the projects that we want to launch for a long time but are constrained in time due to dealings with the banks.
For those who are questioning whether this situation is bad news for bitcoin, we can tell only one thing: it is precisely the belief in bitcoin and the crypto space in general that makes the decision of not looking for alternative banking solutions so easy for us. Our next step is to go dipper into the crypto economy, our current bitcoin-fiat exchange being exactly in the middle (between banking and crypto).
During the last 14 months from the moment BTCxChange was relaunched under a new team and leadership, we have learned a lot about the current system. An archaic decision-making mechanism filled with incompetent people but with power to stop businesses. The banking system looks like a dinosaur cannibalizing itself, since the bank is no longer a service provider but a privilege that can be taken at any time. Who will become the winner in the end, time will show, but from our point of view, the banking system starts decomposing and there are only 2 questions that matter: 1) how long this process will take and 2) how much bad smell will be produced in the process.
We encourage entrepreneurs to enter the crypto space, to look for opportunities to create added value, to count profit in crypto and to stay away from partnerships with the banking system. The crypto economy offers ample opportunities to conduct deterministic business and agreements, free of subjectivism and multiple interpretations, without shortsighted and counterproductive lawmaking. And the most important thing is, the opportunity to grow your business without obstacles, the only limit being your imagination and the processing power of the blockchain which will inevitably increase dramatically in the times ahead.
Smart Contracts introduced by Ethereum and other platforms offer a ripe sector for developers that are looking for a sector to apply their knowledge to. Surely these contracts will become part of the social construct. Entering this space now, will make one of the first experts in a field that will surround us in the future.
I will end this message with a thanks to all the customers that have used our services and hope to leave a positive impression behind. With some of you we hope to interact in the future through new projects.