BnkToTheFuture (BF) Funds Withdrawal Fee Notice.
Dear Investor,
As part of our ongoing commitment to working on new feature upgrades to provide our investors with a better user experience, we recently redesigned the BF Funds Section with improved user experience and added many new features like automated deposits and withdrawals (you can learn more about it here).
As BnkToTheFuture is a Securities Business rather than a ‘Cryptocurrency exchange’, we are required to adhere to a higher standard of regulatory compliance. In order to automate the process of deposits and withdrawals we had to find new banking partners, new Crypto payment processing partners and then integrate these systems whilst adhering to Securities laws, KYC and AML requirements (KYC on the go, transaction monitoring, etc). The regulations also require us to go through a third party escrow service when accepting deposits.
Integrating our new automated payment system has increased our service costs significantly as we have to utilise third-party solutions to remain compliant and process requests at the speed our investors would like.
Our integration with a Crypto payments processor – Coinpayments, costs us 1% on every ERC20 token deposit (more details on the fee structure can be seen here). As per our company terms and conditions, we pass on third-party payment processor fees to investors and this means we were set to introduce a withdrawal fee on cryptocurrency withdrawals. Our terms and conditions already state that we pass on all third-party transaction fees to our investor members and disclose them at point of withdrawal/investment (therefore not required to provide any particular notice for such a fee), however, we still planned to provide our members with a reasonable notice for the new withdrawal fee. Upon completion of the automated deposit integration (weeks ahead of the planned completion date), there was a communication breakdown when our technical team activated our new automated deposit feature and we released the new withdrawal fee before we had the chance to notify our investors about the 1% cryptocurrency withdrawal fee. It was not our intention to introduce this fee without prior notice.
We take the feedback from our investors seriously and realised the communication regarding the cryptocurrency withdrawal fee could have been managed more effectively. We believe our investors deserve a sufficient notice period before introducing such fees. For this reason, we would like to rectify the situation by implementing the following:
- For now, we will waive the 1% cryptocurrency withdrawal fee for our investors;
- We will endeavour to negotiate with Coinpayments for possible solutions to make this fee as low as possible for our investors, however, we are unable to make any promises regarding lower fees as the final decision is with Coinpayments;
- Once an agreement is reached between BF and Coinpayments, we will provide sufficient notice to our investors should any fees be applied;
- Due to the glitch that caused the withdrawal fees to go live prematurely, any investor who has been charged with the new 1% cryptocurrency withdrawal fee since the introduction of the new fee (and until a new notice is given), will be issued a refund for the 1% withdrawal fee. The refund of the new 1% crypto withdrawal fee will be credited to their respective charged accounts;
- Until sufficient notice is provided for new cryptocurrency withdrawal fees, for now, withdrawals will remain free until further notice is given (with the exception of the usual Blockchain tx fee).
- USDT deposits to your BF account should be used for the purpose of investing ONLY through the BF platform. If you do not intend to use the deposited funds for investing, they will be subject to a 0.5% withdrawal fee.
There are no withdrawal fees applied on crypto funds received as a result of making investments other than any Blockchain network fees. Fiat withdrawals are subject to a 1% withdrawal fee with a minimum fee of US$35. For full details see our fees page here.
Our CEO, Simon Dixon explained and answered questions on everything you would want to know about the new withdrawal fee issue on BF Live (Episode 28), you can watch it here to learn more.
We hope we have been able to address your concerns. We always strive to offer the best service and to meet the needs of our investors. Please share your feedback and ask any questions by reaching out to us on [email protected] or use the comments section below.
We would like to thank you for your patience and for choosing BnkToTheFuture to build your portfolio in the equity of FinTech and Crypto companies.
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