Bitbank intends to borrow from Bitcoin users

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Following Coincheck and GMO Coin, Bitbank launches a similar service. The Japanese cryptocurrency trading platform, which turned out to be among the 16 exchanges that received a license from the country’s regulatory authorities for trading activities, intends to introduce a new option – Virtual Currency Lending, a virtual currency lease.

According to official sources, users will provide crypto-exchange with their digital currency on a loan. In accordance with the rules of the launched program, users will be able to receive up to 5% per annum for the possibility of Bitbank to conduct transactions with their virtual means. Account holders at Bitbank already have the opportunity to use the implemented service, however, according to the representatives of the exchange, the service is available only to Bitcoin holders (BTC), but in the near future will be available with other virtual currencies – Ripple (XRP), Litecoin (LTC), Ether (ETH), Monacoin (MONA), Bitcoin Cash (BCH), and others.

The virtual currency provided by users for use within the launched program is blocked before the loan expires, so the blocked digital assets cannot be transferred or sold if the credit period has not expired or the funds have not been returned. The loan period is 12 months. Prior to the beginning of the crediting period, Bitbank will receive applications for participation in the program for crediting of virtual currency within a month. Representatives of the exchange explain that if customers apply in January 2018, but the crediting period begins on February 1, 2018, it ends on January 31, 2019. The minimum loan amount is 1 BTC, while the maximum amount is 25 BTC. Bitbank plans to charge 3% per annum for using less than 5 BTC, 4% – less than 10 BTC, 5% – from 10 BTC and more.

The Japanese crypto-exchange GMO Coin has already launched such a service. Initially, only BTC was supported, but earlier this month the company expanded its offerings to BCH, ETH, LTC, and XRP. The loan period is 90 days for BTC, 150 days for other coins.