The Spanish bitcoin start-up Coinffeine has launched its peer to peer bitcoin exchange. The decentralized open source bitcoin exchange is now available in 70 countries including China, Russia, Indonesia, Brazil and Eurozone.
Coinffeine has partnered with OKPay, a Russian payment processor to enable fund transfers. The partnership will enable Coinffeine to offer its service without having to handle fiat currency at any point. The Coinffeine model involves connecting two users, one who wants to buy bitcoin at a particular price and another one who is interested in selling bitcoin at that price. Coinffeine platform will match the users who satisfy the criteria and then OKPay takes over.
The users will initiate the process of transfer, the one buying bitcoin will pay with his card on OKPay and the other person selling bitcoin will transfer the bitcoin to buyers wallet address. The transaction will be automatically monitored by the algorithm to prevent any fraud. At the same time, users would have deposited a percentage of funds in bitcoin as security deposit. Once the algorithm detects that the transfer has been completed successfully, the security deposit will be released to their accounts. The seller will receive the money into his/her OKPay account and the buyer will get bitcoin into his /her Coinffeine wallet.
As Coinffeine will not be dealing with fiat currency, it doesn’t have to incorporate AML and KYC regulations, thereby keeping the operating costs low. OKPay will be charging a small transaction fee for payments on its system, the fee is expected to be around 0.5 percent per transaction. Currently in beta version, Coinffeine will not be charging any transaction or processing fees. Later on, it will be sharing revenue with OKPay and partner banks.
The Coinffeine desktop wallet is currently available for download on the product website. The application is available for Windows, Apple and Linux systems.