The Luxembourg-based broker Bitstamp says it will start to offer trading pairs using bitcoin cash early next month. Many brokerages have been adopting a wait and see approach to bitcoin cash following the infamous fork which saw bitcoin split into a cash component and the main blockchain currency back in August.
However bitcoin cash has not crashed and burned and is still ranked third in the cryptocurrency race. Thus, recognising it might indeed have some viability, Bitstamp says it will offer trading in bitcoin cash against USD, EUR and bitcoin (BTC).
Bitstamp offers deposits and withdrawals
Bitstamp already offers deposits and withdrawals in litecoin, ethereum and ripple. The company was founded in Slovenia in 2011 by Damijan Merlak and Nejc Kodric. It has partnered with Swissquote to facilitate bitcoin trading. The company is currently based in Luxembourg and is not regulated by the FCA.
Bitstamp is recognised as one of the top five venues for bitcoin trading in Europe, based on pure volume.
Bitcoin cash, despite initial misgivings within the cryptocurrency community, seems to be holding its own. Bitstamp’s founders have said they are determined to maintain a position as respectable purveyors of cryptocurrencies. The fact that they are looking at expanding the range of currencies on offer is indicative of their belief that bitcoin is here to stay, and that there is also a role for its smaller cousins.
A pioneering asset class
Trading against mainstream currencies will be an opportunity for investors to take short or medium term views on BTC and BCH against EUR and USD. On the plus side, working with an established brokerage like Swissquote looks good from a risk and reputation perspective, not being able to secure an FCA license looks bad, but then again, Bitstamp is working with a pioneering asset class and at the time of its application to the FCA, the UK regulator was still viewing the entire cryptocurrency sector with suspicion.