Bitcoin exchange gets status from bank

Bitcoin-Central has been granted bank status in Europe. It is the first time that a bitcoin exchange can call itself a bank. The move makes transactions with banks easier and ensures that users are better protected and eligible for compensation.

Bitcoin Central owes its banking status to an agreement with the French financial services companies Aqoba and Credit Mutuel. According to European law, the ‘exchange office’ is therefore a Payment Services Provider that has an international bank identification number. This makes it possible to issue payment cards and make real-time money transactions with accounts from other banks.

Certain protection rules now also apply, which, for example, entitle users to compensation under certain circumstances if the liquidity of the payment service is jeopardized. However, this would only concern the supply of euros and not apply to bitcoins.

The step means a huge push in the back of Bitcoin, say Bitcoin magazine’s Vitalik Buterin told the BBC: “The more governments and banks are willing to deal with Bitcoin, the more organizations feel confident to take the step themselves.”