Kraken, Europe’s biggest bitcoin exchange and third largest by combined volumes of some $50 million in BTC/EUR and BTC/USD trading, has now publicly confirmed what they unofficially told trustnodes a few days ago.
“After the fork Kraken will enable BCH trading in the following pairs: BCH/XBT, BCH/USD, BCH/EUR,” Kraken says.
They are giving it a ticker of BCH for some reason, rather than the usual BCC, although neither is a valid ticker as decentralized assets, like bitcoin and gold, have to start with X. It is probable, therefore, the ticker will eventually evolve to XBC.
The initial confusion about the ticker was planted by Bitfinex which did not hide their disdain for BCC, calling it a “spurious forking of the Bitcoin project.”
The exchange has a relationship with Blockstream, the for profit company that hires many Bitcoin Core developers, including most of those that coded segregated witnesses (segwit).
So they are seemingly trying their best to make it as messy as possible, stating that they “plan to use BCH as the ticker symbol and “Bcash” as the descriptive name to avoid confusion with Bitcoin.”
They are unsure whether to list it, but the Bitcoin Cash will be distributed to all bitcoin holders and traders on Bitfinex.
The unregulated exchange, which lacks an about us page leading to confusion about the names of their directors, has interestingly risen to become the world’s biggest bitcoin exchange by trading volumes.
That seemingly happened after 120,000 bitcoins, worth at the time some $72 million, was hacked out of the exchange, with details remaining sparse even though almost a year has passed.
Moreover, they were cut-off from the banking system in April this year, sending bitcoin’s price artificially higher there, which is what may have attracted the trading volume.
They have not announced any new banking partnerships since then as far as we are aware, therefore it remains unclear just how exactly the exchange manages to operate.
Nor is it known why they were cut off from the banking system. But one reason may be because Bitfinex was fined by CFTC for “offering illegal off-exchanged financed commodity transactions.” So the bank’s action might be an enforcement measure.
Especially as US authorities have now declared global jurisdiction when announcing a $110 million fine of BTC-e, one of the oldest bitcoin exchange, which has been offline for the past few days with one of their alleged operators arrested recently.
As such, considering this wider background, there hardly appears to be any other exchange more on the eyes of US authorities than Bitfinex.
Therefore, although holding coins on any exchange or trading there carries some risks, trading on Bitfinex, and certainly holding any coins there, appears to be a particularly risky proposition.