A new exchange and wallet service based in Australia and Hong Kong says it is building ‘bank-level’ services around bitcoin, designed to appeal to both serious traders and everyday travelers.
CoinJelly will launch two exchanges for high volume traders, initially for the Southern Hemisphere and then soon after, the Northern. Notably, its consumer wallet option features an ATM/debit card network for use worldwide.
In perhaps its most novel approach, though, the company is cooperating with the Swiss Zurich Insurance Group to insure its bitcoin ecosystem against loss for up to AU$20m (UD$18.73m), or up to 20 BTC per customer.
Accounts will be open to customers in 160 countries and balances available in nine major world currencies, including Russian rubles and Chinese yuan.
CEO and founder Ashley King said security, compliance and transparency were CoinJelly’s biggest issues, in order to build trust with those yet to adopt bitcoin who might have been put off by high profile failures in the past.
The firm follows other exchange launches in the region with a new focus on professionalism and financial services aimed at serious investors.
CoinJelly’s wallet is now launched and live, and its exchange has been under development for 4-5 months. According to King, there have been no security breaches or attempted intrusions as yet.
“We’ve implemented a number of bank level passive and active safety measures including strong encryption, offline back up and two factor authentication, leaving customers’ wallets far less vulnerable to attack.”
CoinJelly’s insured wallet also offers an intrusion alarm system, which identifies possible malicious activity and reacts automatically to head off fraud and attack.
CoinJelly will also be providing ATM/debit cards for customers to easily cash out their bitcoins, and is in the process of finalizing merchant accounts.
The cards are aimed primarily at travelers as an affordable and easy way to transfer funds into local currency worldwide.
If the ATM/debit card plan sounds familiar, it’s because CoinJelly purchased some of the related merchant connection code from defunct Cypriot ‘bitcoin bank’ and debit card network Neo & Bee.
This will enable customers to purchase cards from CoinJelly’s site, load the cards with bitcoins (thus effectively selling them to CoinJelly) and then spending the fiat amounts on the cards like any other bank debit card.
The cards may also be used to withdraw cash at over two million ATMs worldwide.
A limited edition black colored card will be available to the first 500 customers and will also offer discounted rates for life.
CoinJelly approached the Zurich Insurance head office in Sydney with their initial concept, before anything had been coded.
“Initially they were a bit taken aback by the idea, so we went back a month later and showed them the wallet, we gave them a copy of it with 10 BTC and asked them to try and get at it.”
Zurich then responded a few weeks later, saying they had gone through the system and were satisfied that it could insured up to AU$20m. Overall, cooperation between the two companies has been healthy and King described Zurich as being very helpful.
“They’re learning as much as we’re learning along the way, which is great.”
Security is handled through in browser encryption of private keys. Customers may also schedule a visit to CoinJelly’s head office in Brisbane for an extra layer of assurance.
CoinJelly Exchange to Offer Bitcoin Debit Cards, Insured Wallets