In Bitcoin We Trust, one of the lead Bitcoin exchanges in the UK, sent out the following announcement:
After a temporary halt to trading, IBWT has re-launched with alternative methods of funding customer fiat accounts. This alternative funding so far consists of Royal Mail and Postal Orders via Royal Mail. With plans to expand to additional funding methods as the business grows, IBWT has stated that these methods of funding will not be subject to bank account closures, nor transaction freezes, or any other bank related issue.
The IBWT team does have future plans to partner up with interested pro-Bitcoin banks , when they become available, and will be offering additional funding methods at this time.
The new alternative funding consists of sending either hard currency or postal orders to the value of the funding to IBWT (Funding). Using the services Royal Mail provides, IBWT customers can get appropriate cover for their funds (FAQ).
And they have lowered their fees from 0.8 to 0.6, though added withdrawal fees to cover Royal Mail compensation cover. There are no deposit fees, but IBWT strongly recommends that customers pay the appropriate cover fee that Royal Mail charges.
This new method of funding brings a different element to the exchange market. If an exchange can operate outside the use of a bank, then does this signify a step in the movement from fiat to bitcoin, similar to how gold moved to fiat.
IBWT has also recently added Litecoin implementation and have lowered and removed some of their verification. Customers can now deposit with only a verified email, and withdrawals only require an account and a verified address.
They have also uploaded extra resources to help clarify the subject with regards to current UK regulation, which can be found on their resources page under archive. Detailing information from HMRC and FCA, the IBWT Processes and Primer for interested individuals.
The Director has stated that regulations will eventually come, but for now, due to the banks and the lenient Government view, this opportunity to open up access to Bitcoin for the UK has occurred. He has stated that they will adhere to any regulations as they become available and required.
The IBWT Terms of Service have also been updated to reflect their recent updates from the archaic banking world.