Bitbank borrowing Bitcoin to pay interest. Bitcoin Borrowing Program started by Japanese Cryptocurrency exchange Bitbank. BigBank Big News in Japanese Times.
Also, read Bitcoin scam in India.
Japanese Crypto Currency Exchange Bitbank has announced a Bitcoin Burrowing Program. As stated another Government-Approved Japanese Crypto Currency Exchange has launched a program to borrow crypto Currencies from its members. The exchange seeks to borrow 1 BTC or more. Initially, only BTC will be borrowed, but the exchange plans to add other Crypto Currencies including BCH, XRP, ETH, and LTC.
Bitbank Exchange History and Statistics
Bitbank is one of the 16th Fully Licenced Crypto Currency Exchange in Japan. “Virtual Currency Lending”- is a service that allows customers to enter Virtual Currency LendingTransactionswith Bitbank and receive up to 5 percent Virtual Currency per year. When we reach the expiration date of one year we will reimburse by adding the specified usage fee to the Virtual Currency lent by customers in the month of the offering.
“The Crypto-Currency remain locked during the entire loan period. So, the CryptoCurrency cannot be sold or transferred. Only when the loan period is elapsed or returned by Bitbank, the customer will be able to sell or transfer the CryptoCurrency.”
Bitcoin Borrowing Program by BitBank
The Japanese Exchange plans to bid several billion yen for a majority stake in Coincheck
The Exchange shall allow account holders to lend a minimum of 1 Bitcoin (BTC) to its Virtual Currency Lending service – in return for a fixed, predetermined rate of interest.
The Virtual Currency lent by the customer is locked until the predetermined loan period has elapsed,” therefore it cannot be sold or transferred “unless the loan term expires or we return it.
The service shall be available only for BTC holders and is scheduled to include popular Crypto Currencies like Ripple, Ether, Litecoin, and Bitcoin cash in the coming months.
For amounts up to 5 BTC, the dividend is a paltry 3 percent, with only a percent increase for users lending more than 5 BTC, and a maximum of 5 percent in usage fees for amounts exceeding 10 BTC.
Japan Exchange will be eight Crypto Currency trading pairs and is ranked 31st in the world in terms of total daily traded volume.
The move comes on the bank of GMO’s Crypto Currency burrowing program, which the Japanese digital asset exchange launched in April 2018, making Bitbank the second exchange in the Bitcoin-crazed country to do so.
Another Fully Licenced Japan GMO Internet
GMO Internet released on January 2018 – More interestingly to the fact that the Japanese internet giant GMO has launched a service to allow customers to lend their Bitcoins to the company. Customers’ Bitcoin balances will be debited from their GMOCoin trading accounts once loan agreements have been reached. This program is similar to the one launched by the hacked exchange Coin- Check last year.
GMO’s loan terms are 90 days for BTC and 150 days for other coins, which are shorter than Bitbank’s terms. In addition, GMO seeks to borrow a larger amount of coins, from 10 BTC to 100 BTC, paying a fee of 5 percent for all loans.
GMO Coin Elaborated –
The Rental Fee of 10 BTC is equivalent to 0.12345767 BTC which is 5 percent/ Year-(Including tax) multiplied (round down to less than 1 Satoshi) – Tax may be levied on Loan Fees.
“Rental fee = (loan amount × loan period (day) × loan rate) / 365,” GMO clarified, and gave an example that customers lending 10 BTC for 90 days will receive “(10 BTC × 90 days × 5%) / 365 = 0.12328767 BTC.”
Lastly – Lets comment on Japan Bitcoin Offering!!!!!!