Bitcoin Exchange Bitstamp Opens Gold Buying Service to European Customers

     Bitcoin exchange Bitstamp has partnered with precious metals trader Moro & Kunst to offer customers the option to buy gold using U.S. dollars.

     The service is billed as a withdrawal option for users of the exchange, as Bitstamp users can purchase gold directly from the company’s website, choosing from lots ranging from 1 gram to 1,000 grams.

     According to the company, once an order is placed, gold shipments are marked with a certified tracking number and delivered quickly within 2 to 5 days.

     On the Bitstamp website, gold prices are quoted in U.S. dollars and are updated every five minutes.

     “We are introducing Bitcoin to gold trading, and buying gold is the first step in this process. We believe that long-term Bitcoin customers are more willing to take advantage of Bitcoin’s volatility if they trade against gold,” said Nejc Kodrič, CEO of Bitstamp.

     The company told CoinDesk it plans to expand its services soon, potentially offering storage of gold at Moro & Kunst’s vaults in Vienna and Ljubljana and eventually launching direct exchanges of gold for bitcoin.

     It is worth noting that similar services ran into trouble last year when the Financial Crimes Enforcement Network (FinCEN) ruled that businesses that trade in commodities such as precious metals in the form of tokens are classified as money transmission businesses. This means that there are additional regulatory and licensing requirements for the business, as well as costs.

     However, Bitstamp told CoinDesk that gold buying services are currently only available in the European Union, adding that all 28 member states are included, including the United Kingdom.