Last year, we wrote about the move of BitBay cryptocurrency exchange to Malta. The cryptocurrency exchange said goodbye to Poland because of not fully regulated technological law and Malta’s more friendly approach to blockchain-based projects. Unfortunately, in the beginning of 2019, alarming information flows from this exchange which still is the biggest in Europe. One of the exchange customer is fighting for the payment of considerable funds, and BitBay is not willing to make a transfer in zlotys, claiming it is against its internal regulations. What is going on? Can one suppose that the crypto exchange simply lacks funds in fiat money? We are looking at the matter.

A withdrawal request from BitBay in December 2018…

The BitBay user, on one of the Polish popular internet portals, complained to the community, reaching tens of thousands of page views in just one day. His claim states that since 13 December he has been demanding from the BitBay exchange the payment of the equivalent of over 10 BTC in Polish zlotys (this is over a month now in January 2019!). He underwent multiple verifications, including video verification, which, however, did not lead to a positive solution. He complains about the poor quality of the support, from which he has not received incomplete information about what is happening with his money. To support his his reasons, he published a letter from the attorney’s office, where his representative demands releasing of equivalent of US $40000 in Polish currency PLN, citing bank law and service regulations.

Is BitBay holding customer's funds due to insolvency risk?
BitBay’s customer attorney claims that exchange is holding unlawfully $40000 and demands releasing of funds. BitBay is conducting whether to release funds in accordance to the Malta’s law and internal regulations

Document has been edited to remove any personal data, according to Polish law. BitBay’s customer is waiting for the further developments.

What does the BitBay say about holding these funds?

Cryptocurrency exchange BitBay issued a special statement in which it confirms the fact that the situation occurred. He explains that funds have been blocked due to financial procedures, such as regulations to counter money laundering. Exchange is also obligated by the law of Malta, where the exchange is established and will not provide an approximate date for the resolution of this case. BitBay also calms the situation by communicating that no financial problems are present, deposits and withdrawals work without any problems. In addition, exchange promises releasing new projects and functionalities. At the end of the statement, BitBay claims that in near future there will be a big surprise for customers.

BitBay is the biggest cryptocurrency in Europe. Started in Poland, it finally moved to Malta in 2018. Try Bitbay and find out if this cryptocurrency buying and selling market is right for your needs

What conclusions can be drawn from this case?

First of all, there have to be an applause for BitBay crypto market for high standards of communication with the whole community. The fact of the quick release of the statement and patient explanations. On the other hand, as affected customer claims, Exchange’s communication lacked this skills in his individual case.

What is important? The main factor that is worrying is that the withdrawal and holding of funds are valued in zlotys (fiat money). There is no reason to suspect the cryptocurrency exchange for a lack of funds in … cryptocurrencies. Fiat money, especially zloty is a completely different matter. After a year of operation in unfavorable market conditions, cryptocurrency projects are not supported by the easy capital of willing investors, as it was at the beginning of 2018. The shortages in fiat currencies affect some exchanges and most of startups. It is possible that with larger transfers, such as the mentioned PLN 150 000 (over USD $40 000), the liquidity of the stock exchange may simply shake. We carefully observe the situation, and the sentiment regarding the BitBay stock exchange remains unchanged: high risk.

So, what to do? Set up accounts on other exchanges now

As our general sentiment, we recommend exchanges that provide high level of discretion. We suggest cryptocurrency exchanges that provide the lowest commissions, such as Binance or trading futures with advanced leverage, such as BitMEX. The choice of the cryptocurrency exchange should be dictated by the investor’s needs, level of advancement and short-term goals. In the long-term, the funds should be kept on your own, secure wallet. If you want to be able to quickly and easily deposit money from the bank, you should consider the stock exchange in the near and at the same time low-risk jurisdiction: Jersey. Keep in mind that cryptocurrency markets should be used to perform exchanges only, and funds should be stored in secure wallets.


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