The launch of the Laissez Faire (LZF) digital currency-to-fiat exchange platform in 49 states marks the first U.S.-based exchange to operate legally throughout the entire U.S., with the exception of New York. The goal is to provide a digital currency-to-fiat exchange platform that provides the most secure, incentivized trading environment.
Using a structure similar to a Saas (software as a service) platform, LZF provides an autonomous system with fully-implemented banking capabilities. The autonomous, synchronized system minimizes the need to manually process user requests (with the exception of crypto cold storage).
CCN reported earlier this year that the company, formerly known as PS Coin, took the name Laissez Faire, which means the free market.
The exchange’s banking relationships allow LZF to manage the ledger and the platform with the bank acting as a funds custodian. All user-deposited funds are FDIC-insured.
The exchange provides an instant know-your-customer (KYC) approval process that is available to all U.S. citizens. The user must fill out a form and submit a photo. They will then immediately be able to use the LZF fiat services.
The exchange can instantly import and verify many ACH-capable bank accounts via bank login as an added benefit. Hence, the bank account linking process smooth and fast. This feature currently supports about 30 banks. Non-supported banks have to be added manually and verified by confirming two small deposits.
LZF ACH deposits and withdrawals operate in a manner similar to Coinbase and Circle credits/debits accounts. In addition, there are no ACH fees for deposits and withdrawals. Withdrawals get credited to a user’s linked bank account the next day.
Also read: Security bounty attempts spike for PS Coin
The exchange is also introducing same-day incoming and outgoing international and domestic wire transfers, with no fees for wired deposits.
Set to launch soon are LZF’s Euro markets and SEPA capabilities. The platform presently supports bitcoin, Nxt, Dash (Darkcoin), Litecoin, Peercoin, and the U.S. Dollar.
LZF uses a unique algorithm designed to encourage “healthy” behavior among traders by awarding limit orders with royalties relative to their participation in producing a stable market. Traders get compensated automatically for placing orders for as many units of currency as possible, as close to the bid-ask-spread as they dare. They are compensated for having the orders sit, accumulating royalties, before trading.
Back in March, the company challenged cryptocurrency researchers to win bounties for finding holes in its security. The company rewarded any party that reported a previously undiscovered, sufficiently significant, security issue or vulnerability.
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