Bitcoin exchange CEX.IO has announced the launch of its new payment card withdrawal service. This new feature will allow CEX users to withdraw fiat from their exchange accounts to payment cards, in theory allowing them to skip the bank transfer process when making withdrawals.
CEX Adds Payment Card Withdrawal Option
CEX says that this new service has “completed the full circle” of card-based options. The exchange says it became one of the leading exchanges through its credit card purchasing service. Now, with payment card withdrawals, users can both purchase bitcoin and spend their profits with a card.
According to the exchange, payment card withdrawals will make bitcoin trading more convenient, providing their customers with a better user experience.
Bitcoin.com sat down with the CEO of CEX to discuss the details of this new service, as well as the general state of the exchange.
Bitcoin.com (BC): How has CEX been doing lately?
CEX: Growth has been the top keyword for CEX.IO lately. We’ve been watching considerable growth of our user base, trade volume, coverage. And we are excited about upcoming CEX.IO updates and new features.
BC: Tell us about the instant withdrawals to payment cards, how exactly does it work?
CEX: To make it clear, we are speaking about withdrawals of fiat funds (USD, EUR, RUB) to payment cards. Let’s say, a user has traded some Bitcoin for USD and requests to withdraw USD funds to his payment card. We process the request automatically, right after it is placed. Meaning, a user only needs to enter information about the card, without logging in to third party services. In most cases, withdrawals are processed instantly, and card owner is able to use withdrawn funds right away. Individual cases might require some time, but we are negotiating with payment service providers to enable instant processing absolutely for everyone.
BC: What will this payment card withdrawal system provide that regular withdrawals do not?
CEX: Key advantages of withdrawals to payment cards are speed of payment processing and low commissions compared to withdrawals via bank transfer, which was the only withdrawal option available on our exchange so far. Moreover, card withdrawals are possible without user’s full identity verification, meaning that user needs to prove ownership of the card only. All in all, it is faster, cheaper, and simpler.
BC: Are any other exchanges currently providing a similar service?
CEX: We are proud to tell that there are currently no other exchanges offering instant withdrawals of fiat funds to Visa/MasterCard at low commissions. Of course, some exchanges offer withdrawals of bitcoins to cards, but this implies conversions of bitcoins to fiat funds at the moment of withdrawal and can result in additional fees or losses due to bitcoin price volatility. But none of deserving competitors has brought into life what we managed to do in terms of card withdrawals.
We became the top exchange for buying bitcoins with credit cards, due to quick and simple processing of card payments, and strong security of payment card data (backed by PCI DSS certificate). Now, we are glad to have completed the full circle of providing bitcoin purchase and trades for Visa and MasterCard by launching withdrawals to cards.
BC: CEX recently launched ether trading, are there plans to start supporting more altcoins?
CEX: Ether has been beyond competition due to rapid growth of Ethereum popularity. Currently, we are not planning to support any other altcoins, but may add other pairs with ETH.
BC: Any upcoming projects from CEX that you can tell us about?
CEX: For now, I can tell that we are going to expand payment options on CEX.IO and launch long-awaited Bitcoin margin trading. We are also working on blockchain-related projects that are to be disclosed pretty soon. Stay tuned.
This news makes for the second time a large exchange has been the news this week. On Monday, Bitstamp announced a relocation to Luxembourg, where it received a Payment Institution license that will be passported to the entire EU. Bitstamp says that this license makes it the first exchange to become fully compliant on a national level. Suggesting that the Bitcoin industry is maturing, Bitstamp CEO Nejc Kodric stated his belief that regulatory compliance will become a new trend in the Bitcoin industry, which will help the technology go mainstream.
What do you think about CEX’s new service? Let us know in the comments below!
Images courtesy of CEX.IO