Coinify APS, a Denmark-based blockchain currency payment provider, is facilitating the first real estate purchase in Denmark using bitcoin. Coinify processed a transaction worth 117 BTC (290,000DKK, $50,000 USD). The Just-Sold group real estate agency signed up for a Coinify merchant account at the buyer’s…
Coinify APS, a Denmark-based blockchain currency payment provider, is facilitating the first real estate purchase in Denmark using bitcoin. Coinify processed a transaction worth 117 BTC (290,000DKK, $50,000 USD).
The Just-Sold group real estate agency signed up for a Coinify merchant account at the buyer’s request to accept the blockchain payment. The purchase was in process at this report, according to Coinify.
The buyer of the residential property, who requested to remain anonymous, acquired the bitcoins from bitcoin mining over an extended period. The purchased property is in the town of Morkov in the north-west part of Zealand in Denmark.
Coinify, which has facilitated thousands of blockchain currency payments worldwide, saw the request from an individual to support a real estate property purchase as an opportunity to demonstrate another use case for the cryptocurrency. In addition to processing the payment, Coinify assisted with the transaction’s compliance aspects.
“Whenever there are so-called large cash transactions with traditional currency, there are always questions regarding the source of funds,” said Joosep Vahtras, Coinify’s compliance officer, in comparing the benefits of bitcoin transactions to those made with cash. “According to anti-money laundering rules, a person must disclose the origin of assets when purchasing for more than the equivalent of 100.000 DKK (15.000 EUR).”
For real estate and government agencies, information about the source of funds is often difficult to verify or disprove. With a physical cash deposit in a bank account, it is nearly impossible to prove the origin. With bank transfers, only the “one step backwards” can be traced.
“Since banks operate with closed ledgers, a great amount of resources are required for obtaining the information in midst of the bureaucracy and customer privacy,” Vahtras said. “In comparison, bitcoin as a payment system uses open public ledgers that are transparent and easily accessible for everyone.”
Coinifiy contends that the idea that bitcoin is anonymous is incorrect. On the contrary, bitcoin is highly transparent and several compliance businesses are using the blockchain technology.
Vahtras said Coinify uses Chainalysis to track a prospective buyer’s previous wallets and transactions. New York City-based Chainalysis provides tools to provide trust between financial institutions and identify malicious actors.
Coinify also recently announced a strategic partnership with Vietnamese exchange Bitcoin Vietnam to launch a platform that will help integrate bitcoin and alternate currencies as a mode of payment in the country, CCN reported.
Featured image from Shutterstock.
Last modified: May 21, 2020 10:32 AM UTC