Bitcoin Firm Coinapult Opens to US Market

Yessi Bello Perez
May 21, 2015 at 18:02 UTC
Updated May 21, 2015 at 18:09 UTC
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Bitcoin payment processor and storage provider Coinapult is now seeking customers in the US market following a services integration with Crypto Capital.

The bitcoin firm did previously offer its bitcoin wallet service to US customers but said that the country’s users were blocked from its website in July last year as the company was not a licensed money transmitter.

By opening an account with Crypto Capital, a licensed money transmitter in Panama, Coinapult will now allow its users to deposit, withdraw and transfer fiat currency.

A Coinapult spokesperson told CoinDesk:

“Coinapult is not a licensed money transmitter business, and as such, we did not offer our services to the US market. Now that Crypto Capital will act as a money transmitter on Coinapult’s behalf, we are excited to reopen services to the US.”

“From both a legal and financial perspective, any fiat movement between Coinapult and our customers will be handled through Crypto Capital functioning as a licensed money transmitter on behalf of Coinapult,” the spokesperson continued.

According to Crypto Capital’s website, customers are provided a “segregated fiat account” to US users. Clients that offer software products to bitcoin users, the company states, are then able to move fiat currency in and out of these accounts.

Crypto Capital will perform know your customer (KYC) checks on behalf of Coinapult.

Hot wallet attack

Coinapult’s most well-known product is a service called LOCKS, which allows users to peg the price of bitcoin to gold, silver, British pounds, US dollars and euros.

The company’s wallet service was hacked in March this year, resulting in a loss of 150 BTC (approximately $42,900).

The Panama-based startup restored its services the following month. The spokesperson said that the company was hoping to introduce client-side multisig functionality by the end of July.

US Map image via Shutterstock.

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