Cyprus approves Bitcoin's entry into the foreign exchange market

     Recently, foreign exchange brokerage service provider FXFX announced that the platform will cooperate with BitPay to accept Bitcoin deposits and financing under the supervision of the Cyprus Securities and Exchange Commission .

     Prior to accepting Bitcoin funding, FXFX accepted payment methods such as bank wire transfer, Cash-U (mainly used to pay for online games, VoIP technology, telecommunications, IT services and foreign exchange transactions), ClickandBuy (an online payment service provider that allows payments and fund transfers via the Internet), credit/debit cards and Skrill (an electronic payment, storage and money transfer system).

     “After clarifying the relevant European jurisdiction regulations in Cyprus, we expanded our business scope - and also increased the types of transactions - in order to provide more advanced services in a safe and orderly trading environment,” the company wrote in a blog post on its website. “Bai Lix authorized third-party payment processor BitPay to manage transactions, and hired experienced personnel to manage high-volume Bitcoin transactions for Netease Wallet, Adyen, Microsoft, etc.”

     Among all regulated foreign exchange service providers, FXFX is one of the first brokers to introduce Bitcoin funding.

     The global foreign exchange market is the world's largest unregulated market, with a daily turnover of more than $5.3 trillion. Forex trading has become increasingly popular over the past decade as a large number of brokers have made it increasingly easier for ordinary people to invest and monitor the market.

     However, in many countries, trading foreign currencies is illegal because it involves high leverage and extremely volatile market prices, which leads to the fact that many governments consider trading foreign currencies to be speculative. In the United States, foreign exchange trading is strictly regulated, and in order to obtain customers from the United States, foreign exchange dealers outside the United States must comply with the rules and regulations of the U.S. Securities and Exchange Commission.

     Although FXFX is regulated by the Cyprus Securities and Exchange Commission, it does not accept clients from the U.S. However, FXFX did not clarify whether accepting Bitcoin would create a loophole, as clients from the U.S. would be able to deposit using Bitcoin , while tracing the origin of Bitcoin transactions is essentially impossible.