London-based digital currency exchange Coinfloor has announced it will adopt a ‘no-fee’ bitcoin trading policy beginning later this week.
With the move, Coinfloor, one of the larger players in bitcoin’s still nascent GBP market, embraces a pricing strategy that is comparable to the industry’s largest, though primarily China-based exchanges, which have long withheld fees on bitcoin-denominated trades.
Speaking to CoinDesk, exchange representatives indicated that the move is designed to boost liquidity at the exchange, the largest GBP bitcoin trading platform by volume, according to data from Bitcoinity.
The exchange sees just over 630 BTC (roughly $425,000) in GBP/BTC trades daily, a figure that puts it ahead of competitors in the market including Coinbase’s GDAX exchange and San Francisco-based Kraken.
Yet, Coinfloor founder Mark Lamb said that he believes Western exchanges shouldn’t be afraid to follow the more “innovative” policies adopted globally.
Lamb told CoinDesk:
“We also think the model is the right model for an exchange and could really fuel growth of Western bitcoin trading.”
The news is notable given that in recent weeks, BTCC, Huobi and OKCoin, the world’s three largest exchanges, have been increasingly active in engaging with the People’s Bank of China, the country’s central bank.
So far, this interaction has seen the exchanges adjust policies on lending-based margin trading, though volume figures appear unaffected, returning to averages seen before the price neared an all-time high earlier this month.
However, Lamb stopped short of saying that the move was designed to capitalize on recent uncertainty surrounding China-based exchanges.
“This is about growing the trading activity in the UK rather than taking away activity from other regions,” he said.
Coinfloor said it will continue to charge for bitcoin withdrawals, as well as GBP deposits and withdrawals.
Old-style cash register via Shutterstock