This Platform Allows Bitcoin for Asset & Commodities Trading

A new platform called Evolve Markets allows investors to trade commodities, indices, and cryptocurrencies by funding their trade accounts with bitcoin.

The platform connects independent traders to global financial assets using the bitcoin payment protocol.

Those who register on Evolve Markets can begin to trade quickly by funding their accounts with bitcoin.

Access Liquid Global Markets

Traders that have a bitcoin-funded account can access the most liquid global markets to execute trades. The platform holds account balances in bitcoin, which users can withdraw at any time without incurring withdrawal fees.

The platform also provides robust financial tools, institutional liquidity and a tier 4 institutional infrastructure. Features include bitcoin BIT base security accounts, immediate account approval, MetaTrader WebTrader, deposits tradable in minutes, up to 1:500 leverage and negative balance protection.

All bitcoin deposits from traders are stored in cold storage. Bitcoin withdrawals are managed manually to prevent attacks or unexpected errors by manually executing and verifying each request. Security measures also include two-factor authentication using MetaTrader 4 Password or Google Authenticator and database encryption across multiple layers.

Also read: This bitcoin-only platform reinvents stock, commodities and forex trading

Affiliate And Broker Programs

Evolve Markets offers an affiliate structure to encourage traders to refer the platform to their peers. The affiliate and “introducing brokers” programs give users an opportunity to earn ongoing commission on each trade executed by those referred by them. The ongoing commission is paid in bitcoin to the referrer’s MetaTrader account.

Evolve Markets also offers affiliate link and commission tracking to maintain a transparent structure allowing traders to track commissions earned from referrals.

The company plans to add more features to the platform.

Evolve Markets is a privately-owned IBC in the Grenadines and Saint Vincent. The trading platform specializes exclusively in bitcoin-denominated accounts and adopts a straight-through-processing execution model. The tradable financial assets supported on the platform include commodities, forex, indices, and cryptocurrencies.

Image from Shutterstock.

Chinese Bitcoin Exchanges Stop Loan-Based Trading, Fees Could Return

Although the halt has been in effect for about a week now, Chinese bitcoin exchanges Huobi and OKCoin have publicly and formally announced the halt of margin trading, as per the requirements of the PBOC, China’s central bank.

OKCoin issued its announcement on its website. A loosely translated version reads:

According to requirements of the regulators, the company has made the following rectification: Margin trading services will be stopped immediately. There will be no new margin trading transactions. Users will loans that have already taken place will not be forcibly asked to repay the debt. Users will no longer be able to apply for new loans after voluntarily repaying previous loans.

Huobi issued a similar statement on its Weibo account earlier today. BTCChina officially announced the suspension of its margin loan trading feature a week ago on January 12.

The changes being enforced by the big three bitcoin exchanges come amid what some would call a crackdown by the People’s Bank of China. The central bank sees the feature of margin trading to be a violation by the bitcoin trading platforms. More pointedly, the authority has deemed the exchanges’ margin trading offering as the very reason behind bitcoin’s soaring rise in value since the turn of the year, causing “abnormal” market fluctuations, as the PBOC put it.

The PBOC’s discoveries in the trading platforms’ business and operational processes were revealed yesterday by Chinese media reports. The PBOC determined that BTCC, in Shanghai, had been functioning beyond the scope of its business whilst offering loans, a violation. The Beijing branch of the PBOC said that Beijing-based OKCoin and Huobi had – aside from providing margin trading options – not set up or followed sufficient anti-money laundering systems within its platforms.

According to a report in the South China Morning Post, investors were able to borrow up to four times the collateral to buy bitcoins via margin trading. Investors also had the means to borrow bitcoins with the leverage for short-selling.

Trading Fees Discussed

Margin trading fees and cash withdrawals make for the main profit model for bitcoin trading platforms in China. There are zero trading fees among the major exchanges in the world’s biggest bitcoin trading market, a practice that has led to significant trading volumes in China. However, it is entirely plausible that bitcoin exchanges resort to collecting trading fees.

According to a report in regional publication CNR today, the downturn in bitcoin trading activity since the PBOC’s involvement along with the “deleveraging” reality of the lack of margin trading is bound to have a telling impact on bitcoin exchanges’ revenue in China. Enough for the platforms to begin trading fees that could be less than one-thousandth of the value of the trade, according to one CNR source.

Meanwhile, despite media-reported PBOC claims that trading platforms violated rules by offering margin trading, BTCC CEO Bobby Lee told Reuters today that nobody had explicitly stated that margin trading for bitcoin was illegal. Pointing to a lack of any official documentation, he added: “So as far as I’m concerned, at this moment, we have not received any official documentation, verbal or written feedback from the PBOC with regards to their conversations with us over the last two weeks.”

Further, Lee also confirmed that exchanges had discussed bringing in trading fees whilst adding that such a move would have to be preceded by the PBOC’s involvement first.

Meanwhile, the newest developments with the ongoing PBOC investigations of bitcoin exchanges haven’t had a negative impact on bitcoin prices today. Value has gained, registering of $906.98 for the day.

Image from Shutterstock. Chart from BitcoinWisdom.