BiteBTC, a recently launched bitcoin and cryptocurrency exchange that operates transparently from Singapore has announced that they are seeking to change their jurisdiction.
The BiteBTC team said that it has spent the last few months in empty attempts to get Singapore’s financial regulator, the Monetary Authority of Singapore (MAS), to agree on simplifying the method of verification of its customers.
The exchange maintains its methods have fulfilled all of the necessary conditions and produced documents for all of the necessary requirements, but they were still refused.
For BiteBTC, this means that only a small portion of its traders can now undergo verification and use the exchange. Understanding that it will have to take some short-term pain for long-term gain to remain compliant, the BiteBTC team recognized that right now they will have to miss out on serving a large portion of their potential users.
On the decision to change jurisdiction, the team said:
“We will continue to stay physically in Singapore, but we will have to change our legal company and legal address. Currently, our lawyers are inclined to consider offshore jurisdictions, such as the Seychelles or Gibraltar. In addition to the opening of the company, we will be forced to open bank accounts for the reception of fiat currencies from customers. It will also take some time. We understand that this step may have a negative impact on our situation, but this is the only possible option for the active growth of our client base and connection of new traders.”
Finally, the exchange confirmed that all balances of users are in complete safety, funds continue to be utilized in strict accordance with the laws of Singapore and will be transferred to new accounts of the company in a different jurisdiction in the near future.
UPDATE: August 17th
BiteBTC announced on Friday, August 17th that its lawyers managed to develop a model in which the exchange will be able to continue working, maintain a legal address in Singapore and at the same time offer its customers simplified verification for trade in cryptocurrencies. Its subsidiary company received permission to process fiat payments in one of their Swiss banks.
Beginning Tuesday, August 21, users will receive notifications of the completion of the simplified verification process and admission to their personal accounts. This process will take several days, taking into account a large number of traders waiting for verification.
Previously verified users will retain their privileges of working with fiat currencies, however, BiteBTC is asking for new details to enter and withdraw funds in their personal accounts. BiteBTC confirmed that all fiat balances are in safe and have already been transferred to a new bank.