Spain-based bitcoin startup Coinffeine has launched the globe’s first decentralized digital currency exchange through partnership with Russian payment processor OKPay. The platform will be available in over 70 countries, including China, Russia, Brazil and Indonesia.
Founded in 2014, Coinffeine became the first bitcoin company that received financial support from the Spanish bank Bankinter. Its success is largely due to investment from Abanlex, a law company that is known for winning a lawsuit against Google in Europe.
The company allows its users to anonymously exchange fiat money into digital currency in a P2P way and transfer bitcoins using your own bank account. Coinffeine is not a website, but rather a software that you download on your computer.
In addition to OKPay, the exchange projects to incorporate other payment systems, such as Alipay or PayPal, to enlarge its services to other countries.
The platform’s technology eliminates the need for Coinffeine to spend time and financial resources to follow the KYC requirements or fulfill money laundering laws in each country.
“Not having to identify users or enforce KYC laws has allowed us to design a much more scalable exchange model. But what is even more interesting, is the user experience we offer. Coinffeine is like BitTorrent. You just download it, you connect your OKPAY account, or PayPal in the future, and use it”, said Coinffeine CEO Alberto Gómez Toribio.
“We want our customers to be those who simply have a PayPal like account and want to buy or sell bitcoins in a simple and effective way,” Gómez continued.
Coinffeine offers the first Bitcoin desktop wallet that enables users to acquire and sell digital currency automatically. While traditional exchanges function as a third party, Coinffeine doesn’t include deposits or withdrawals.
Currently, the platform allows only bitcoin to fiat exchanges, but the company plans to integrate two-way trading and crypto-to-crypto exchanges.
According to Gomez, the user experience offered by Coinffeine is similar to such exchanges as BitStamp and Coinbase. “To use Coinffeine is as simple as using LocalBitcoins, but as powerful as using Coinbase or BitStamp”, he said.
The users are recommended to spend moderate amounts of money, as Coinffeine’s new platform is now available in beta version. It also includes some limitations of liquidity available in the market. However, the company is now in talks with specialized companies to close liquidity deals.