When it comes to moving funds out of a bitcoin exchange, things can get hairy quite quickly. In the case of one Canadian bitcoin enthusiasts, moving US Dollars out of the QuadrigaCX exchange left him with limited options. The method used in this case – a cheque withdrawal – does not seem to work out that well either. Other options require the beneficiary to pay heavy fees, which is not all that appealing either.

Converting Bitcoin To Fiat Can Be A Hassle

Most cryptocurrency exchanges offer wire transfers as the primary withdrawal option. While that is only normal, it can be a bit of a problem for some users as well. Why somebody would use a Canadian exchange in the hopes of converting BTC to US Dollar is a bit of a mystery in the first place, but QuadrigaCX offers that functionality to Canadian users. After all, Canadians are left with very few exchange options if they want to obtain any currency other than the Canadian Dollar.

This particular user explained how he had three withdrawal options at his disposal. The first option was to use a wire transfer, yet that would be quite expensive. Users who receive the funds pay for bank fees and exchange costs, which can add up to significant amounts rather quickly. The second option would be to use PayPal – which is a rarity to begin with – yet that service is even more expensive than any other type of payment options.

Last but not least, he could opt for a cheque payment. Contrary to how the European world deals with payments, cheques are still very common across both the US and Canada, for some reason. When he requested the cheque, the fees were kept to a minimum, even when that meant waiting a few extra days to receive it. Unfortunately, that was not the only issue affecting QuadrigaCX’s cheque payment option.

When he received the cheque, it turned out the “Pay To” line was left completely blank. It is unclear if this was an error on QuadrigaCX’s side, or if this is the way the handle cheque payments in general. It is a very insecure method of doing so regardless, as anyone can steal such a cheque, fill in their name, and have it paid out to their bank account. Thankfully, this person’s mailman got the cheque to the right address and the funds was received successfully in the end.

It is evident there is a growing need for bitcoin exchanges who serve Canadian customers and use convenient withdrawal methods. Gemini is an option worth checking out, as they serve Canadian customers yet pay out in US Dollar if needed. ACH Transfers are not overly expensive compared to regular wire transfers, so that could be an option worth checking out. Avoiding cheque payments seems to be the best option for now, though.

Header image courtesy of Shutterstock

Tags: , ,
Author's gravatar

See this Premium Cloud Mining Platform that give $15 for free just by signing up, perfect solution for those who follow the trends in the market of cryptocurrencies. It is available and beneficial for everyone! http://bit.ly/2kkZT0k

Author's gravatar

Quadriga Coin Exchange is a great Canadian exchange, I use it all the time to move CAD$ in and out of my bank account, trade etc. Withdrawals never take more than a day to process and the fees are minimal. MANY withdrawal options available.

Here they are:

Express Interac e-Transfer Min $50, Max $2,000 Next Business day 1.5%
Express Bank Transfer Min $500, Max $5,000 Next Business day 2%
Bank Wire Min $100, Max $500,000 4-10 Business days Free
Direct Bank Transfer / EFT Min $50, Max $5,000 4-7 Business days Free
Cheque Min $100, Max $500,000 7-10 Business days Free
Visa/MasterCard/AMEX Min $50, Max $9,999 4-7 Business days Free
Paypal Min $50, Max $3,000 1-2 Business days Free
Voucher Min $10, Max $2,999 Up to 5 days Free
Virtual Visa Min $25, Max $200 Up to 24 hours $5
Cash Delivery Min $500, Max $5,000 Shipped within 72 hours 2% + $20

Perhaps if you are from the US and need to move USD to a USD fiat account you should use a US exchange? Like why would I use a Mexican exchange , convert BTC to Pesos and then try to have those Pesos deposited to my CAD$ fiat bank account? I mean really? I am sure as hell not going to ask them to mail me a cheque in Pesos.

If you want to park your BTC hedged against any number of fiat currencies you can use Uphold.com, when you need to withdraw, transfer that value to whatever exchange you normally use to process fiat conversions that has a clear path to your fiat account. You only need one off ramp.

Leave a Reply