Article Image 25724

The Facebook twins' next mission? To revolutionise bitcoin trading

The financial press is buzzing with speculation over recently-opened bitcoin exchange Gemini. The Winklevoss twins – famous for claiming Mark Zuckerberg took their idea for Facebook ­– are two of the biggest investors behind the project. The last bitcoin venture they were involved in, BitInstant, ran into legal difficulties and folded in 2014. Gemini, however, is intended to be different: today, we’re investigating why it's making headlines and what it means for you.

Why's Gemini important?

Gemini’s taking an unusual approach for bitcoin exchanges, targeting working with both individual consumers and traditional financial institutions. Its aim's to be an organisation that appeals as much to Wall Street as it does to the ordinary consumer.

So what’s changing?

Getting big financial players on board means making adjustments to the normal bitcoin exchange model. One of the most important's that Gemini’s registered not with a ‘BitLicense’ but as a ‘chartered liability trust’, meaning it's under much stricter regulatory control than many bitcoin businesses. This is a departure from the Winklevoss twins’ last investment in BitInstant and has potentially important consequences for the money markets.

One of the first things Wall Street traders will look for when working with partners is consumer protection. Bitcoin exchanges generally work outside of the traditional system, but this new generation’s been working with industry experts with experience in organisations like Google to make their services more secure, including using technology like hardware security modules and encrypted keys.

What does this mean for me?

Stronger regulation means digital currencies are becoming more viable for banking and investment. It’s important, however, to note that this is really just the very beginning of the process. Attitudes towards bitcoin are split: some governments have yet to implement any regulation, while others, like Iceland, have banned it outright. Consumer protection’s therefore still a problem – any issues may be difficult to solve depending on your country.

Don’t forget also that payments are irreversible, meaning you can only get your money back if the payee refunds you. The value of bitcoin’s also highly volatile: in August 2015, it dropped by over $70. Equally, if cryptocurrency's lost in transfer, there’s no way to get it back.

Bitcoin has enormous potential, but it’s not yet as secure as traditional currency, so it's worth erring on the side of caution. If you’re making a large wire transfer, particularly an international money transfer, you’ll find much greater consumer protection in everyday ‘fiat’ currency (money regulated and set as legal tender by a government).

To keep up-to-date with latest changes in bitcoin regulation and how it might affect your international money transfer, check out our regular blogs.

Comparison tool

Sending Currency
Buying Currency
Send USD Receive

V Piccciani

Everything went great. The money is in the account in Brazil exactly the amount we agreed, very fast and safe, thank you very much for the service

Chloe Rogers

Your site is top, thank you. I was going to use my bank and but came across you on Forbes site, I am glad I did. I went on and used Torfx very good service got the rate right, saved me money compared to many others you list, they even helped me get an aussie bank account. Once again thank you for help!
Repatriating funds - sending money back home

REPATRIATING FUNDS – TRANSFERRING MONEY HOME

When returning funds, profits or receipts from overseas back to your home country, the process can seem daunting. It is just a question of understanding the relevant regulations and tax rules. At The Money Cloud, we show you how to get it right first time and how to maximise your money.

International payments - overseas money transfers

INTERNATIONAL MONEY TRANSFERS FOR BUSINESSES

As a business, making global payments involves many risks, including exchange rate risk. If you are making regular transfers the cumulative costs due volatile exchange rates can be excessive. We can empower you to make International Payments cheaper and easier for your business.

Market Insights

Sign up for our newsletter.

Thank You for subscribing to our Newsletter

You have successfully signed up to our Newsletter