BitSpark Closes Exchange to Focus on Establishing Bitcoin Remittance Service


         BitSpark Closes Exchange to Focus on Establishing Bitcoin Remittance Service

Asian Bitcoin company BitSpark announced the temporary closure of its bitcoin exchange earlier this month so the company could focus on its pioneering bitcoin remittance service. The company also recently expanded into mainland China through a partnership with Chinese Bitcoin company Melotic.

Melotic recently shut down its own crypto-currency exchange, citing a lack of demand for the service. A company blog post read, “Simply put, we did not experience enough growth in this product to justify the ongoing costs of development, maintenance, and support.” According to BitSpark CEO George Harrap, his company closed their exchange for similar reasons.

“Recently our remittance business has [been] taking off with rising support for our key remittance corridors of the Philippines, Indonesia, Australia, Hong Kong and China. Given this, we have decided to temporarily retire the exchange and shift focus on building our remittance service as it is the best direction for Bitspark at this stage,” read a BitSpark press release.

The First End to End Cash Bitcoin Remittance Service

Speaking with Bitcoin Magazine, Harrap said the company might reopen its bitcoin exchange in the future, but for time being it will focus on what it does best: remittances. BitSpark was the first company to offer a “bitcoin in the background” remittance product, meaning senders and receivers didn’t have to fret with the hard-to-understand digital currency, but still got the benefits.

That “cash-in, cash-out” philosophy has since taken off, with many Bitcoin companies hoping to increase bitcoin adoption and remove the complexities of bitcoin. BitSpark will publicly announce a new remittance product at the Innotribe 2015 Asian Semi-Final showcase, a fintech startup competition run by the SWIFT payment network.

Harrap was short on details about the new product, but he did say this when asked about what was still missing from the company’s remittance offering:

“Onramps and offramps are still very difficult for Bitcoin. If you are in a less developed or small country, it may be very difficult buy or sell bitcoin, making remittance impossible. With a ‘bitcoin in the background’ product users don’t have to worry about that, but, nonetheless, liquidity is an issue and something we’re looking to solve.”

The CEO also shared that though the company set out to help individual senders of remittances, the majority of the company’s customers are businesses sending money to other businesses aboard. Though not its originally targeted customers, the new B2B customers were welcomed, and the company now will focus its efforts on better serving that new demographic. Harrrap added that the extra liquidity brought by the larger customers could help all customers, small and large.

Melotic Partnership

Like BitSpark, Melotic is not calling its quits when it comes to Bitcoin. Though the company has closed its exchange for good, it will be launching a new product, supposedly months in development, soon. Harrap was also unwilling give any details about the nature of his company’s partnership with Melotic, but did said the two companies will be working together extensively in the future.

“We are going to be working together to bring several new and innovative Bitcoin products and services to mainland China,” he said. “The country accounts for the majority of bitcoin trading volume but is still a very untapped market when it comes to bitcoin.”


Bitcoin Price Analysis: Could Three Times Be the Charm for This Resistance Level?

Bitcoin remains in its tightly coiled range as the market continues its sideways trend for the third week in a row.

Bitcoin Schmitcoin

Op Ed: Defining Decentralization: How Ambiguity Continues to Divide Crypto

In the pursuit of mass adoption, decentralization shouldn’t be our goal, but instead a means to achieve the many different, and equally important, goals that exist for cryptocurrency users.

Paul Puey

Op Ed: Why It’s Unsafe to Store Private Crypto Keys in the Cloud

Unless cybersecurity becomes part of the fabric of blockchain and crypto with stakeholders taking it more seriously, it will take much longer for this amazing technology and currency to get the mass adoption that it deserves.

Paul Walsh

Op Ed: How Bitcoin’s Protocol of Peace Can End the Nuclear Age

Bitcoin offers an alternative to a universal security system backed by men with guns. It creates a new model of security based on cryptographic proof that can resist unlimited applications of violence, making a bulletproof network.

Nozomi Hayase