Japanese cryptocurrency platform Bitbank has launched a program under which it borrows from its customers bitcoins at interest. The minimum loan amount is one coin. Soon she will also start to take users loans in lytkino, ether, XRP and Bitcoin Cash.
Bitbank is one of 16 exchanges in the Country of the rising sun, having a license from the government. On 25 may, the exchange officially announced the new service:
Virtual Currency Lending allows clients to borrow Bitbank virtual currency, receiving up to 5% per year… after one year we will return to customers the loan currency, paying the fee for its use.
Representatives of the exchange said that users who have an account on Bitbank can use the new service. While we are talking only about bitcoin. However, in the future, said in the announcement, Bitbank “will gradually add other virtual currencies: Ripple, litecoin, ether, Monacoin, Bitcoin, Cash, etc.”.
The exchange also reports:
Important point: virtual currency, which the client gives the loan remains locked until the until the expires the period of the loan. It is impossible to sell or transfer, we will not refund.
The period of the loan lasts for 12 months. To make it easier to Bitbank for one month attracts customers to participate in the program. For example, if client “recruit” in may 2018, it will provide a loan for the period from 1 June 2018 31 may 2019.
Also Bitbank says:
The fee for use is determined based on the amount of virtual currency… the Minimum amount that the company borrows, is one bitcoin, a maximum of 25 bitcoins. Bitbank will pay 3% for any given loan amount, amounting to less than five bitcoins, 4% — for the amount more than five but less than ten bitcoins, and 5% — for 10 bitcoins or more.
If clients prematurely abandon the contract, they shall be collected a penalty of 5%, which includes applicable taxes.
Another licensed Japanese exchange — driven GMO Internet GMO — Coin- launched a similar service in April. It was originally supported only by bitcoin, but in may, the list was added to Cash Bitcoin, ether, litecoin and XRP.
The loan term for GMO is 90 days for bitcoin and 150 days for other coins. This is a shorter period compared to the Bitbank. In addition, GMO borrows larger sums between ten and 100 bitcoins, paying all participants by 5% per annum.