London-based bitcoin exchange Coinfloor has launched Coinfloor Market, a broker-based peer-to-peer marketplace, which will enable consumers to buy bitcoin from professional brokers.
Speaking to CoinDesk, Coinfloor CEO Mark Lamb said the new marketplace is designed to provide a more consumer-friendly and personal bitcoin buying experience.
Bitcoin brokers, he noted, have to undergo a due diligence verification process, which will be refined over time.
"The important thing is that they are vetted professionals, they are not amateurs," he said, adding that some of the brokers have been trading with Coinfloor for a long time.
How it works
New users register with an email address and password, then are given the option to choose their preferred bitcoin broker.
Once the email address provided has been confirmed, consumers are asked to set up two-factor authentication. Following this, Coinfloor requests users to upload valid photo ID and proof of residence.
To buy bitcoin, registered users must transfer the desired amount in GBP to their chosen broker's bank account, with a minimum deposit of £20.
Once the money has been transferred, bitcoins are sourced directly from Coinfloor's exchange and held in escrow until the broker confirms the receipt of funds.
Bitcoin broker Peter Wood, known as y3peto in Coinfloor Market, said in a statement: "My customers want a fair price, a secure transaction and a safe place to store their bitcoins. Coinfloor Market provides that ... It gives me the well deserved recognition for my work as a bitcoin broker in the UK."
The launch follows Coinfloor's partnership with Estonian Bank LHV in March, which enabled the bitcoin exchange to handle user deposits.
Broker image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.