Trading binary options on Bitcoin online can be a secretive business at times, which makes shedding light on this emerging field both challenging and important. During last week’s iFX EXPO 2016 in Hong Kong we got to meet with the CEO of IDS B2B, Mr. Kang Jung Tae, who was accompanied by Mr. Bong Gan (Fred) Ki, one of the directors of IDS B2B, which operates the IDS Option brand.
The IDS B2B CEO explained that the bitcoin binary options platform was created in Hong Kong and not South Korea in order to access a global marketplace based on English and Chinese, as well as that it is expected to reach $5 million in assets by the end of the year. The interview was conducted with the help of a Korean translator and the full answers are provided below.
Please describe your company’s background
Back in 2008, our parent company IDS Holdings started the first online educational company for futures and derivative products in Korea. It’s running successfully and expanding as a solid and sound company in Korea. Everyone knows the foundation of financial is customer’s trust. This foundation is not built up by just words, but in practical action. I believe that is how to gain energy to grow a business in a short period of time. IDS Holdings has formed a global network of 7 companies including IDS B2B, which are focusing on providing continuous highest level of differentiated service.
How has IDS Option been received since it launched?
IDS Option was created on 29 June 2015 and started offering Bitcoin binary option service to customers on 1 October of the same year, with 32000 members now. The average number of orders per day is keeping at 500-700 which is leading the market. As these results are the result of the high priority we give to prompt customer service, we have received positive feedback on social networks like Facebook, Twitter, etc. By upgrading our system and developing a mobile version, we are expecting to have a closer approach to our customers in the future.
Where is the business idea from?
The business idea was found at FinTech. FinTech is formed by Financial and Technology literally. Meaning making use of mobile, Social Network Service (SNS), big data, and other up-to-date technology, basic financial technique and unique new forms of financial technology. In other words, alternative financial services such as remittance, payment and in other various areas which make use of the advantages of the internet and mobile- these have high accessibility to the customer who is breaking away from traditional store centralized financial services.
In 2009, cryptocurrency issuing started. Bitcoin can be used across borders and was made to be used anytime anywhere, conveniently like cash. We realized the increasing influence of cryptocurrency, and we thought about how to combine this kind of product with financial product, and we noticed binary options through a forex broker company. We came up with a plan of Bitcoin binary option product. Combining mobile phone and internet, when internet is more widespread, recently we feel that the payment methods that we used to have need to be broadened.
Who developed the platform?
Our four staff members developed it themselves. Two of them are in charge of planning and two of them are responsible for computation development.
What kind of people trade binary options with bitcoin?
Mainly individuals are trading now. During our site’s starting stage, our main customers were from Russia, Ukraine and Indonesia. But now our visitors are mainly from US, UK and other European countries like Italy. You can say there’s almost no Chinese customers now. When Chinese version and online marketing has been developed, we are expecting Chinese users will be increased rapidly.
What does anonymity mean for traders?
Anonymity is always mentioned when talking about Bitcoin’s characteristics. Different from bank transaction with account number which is connected with lots of personal data, Bitcoin does not require any personal data to mine or make a wallet. You only need public key act like account number in bank transaction and private key act like password, to send and receive Bitcoin without entering any other data. Public and private key are not connected with personal information which gives users anonymity. Because of this characteristic, anyone with a computer and internet can trade. Send or receive Bitcoin just like internet banking by using wallet downloaded from internet or smartphone.
With the advantage of purchasing Bitcoin at an exchange or encashment, not only traders but enterprises can also do remittance or payment without limitation. But that also brings the disadvantage of illegal money laundering as well. However, even now different countries are enhancing their tax policy and anti money laundering (AML) laws to level up the transparency. This transparency includes exchanges or stores needing personal verification or personal data to estimate possible identities by tracing a Bitcoin address with the owner’s details and consumption record when the Bitcoin address passes through the store even once.
How do customers trust your platform after Mt. GOX went down?
Mt. Gox was the largest Bitcoin trading site which was hacked and suddenly closed down on 25 Feb 2014, which was seen as the worst crisis for bitcoin. People with balances at the site fell into chaos. Because only one encoded key was provided to a basic Bitcoin wallet, when the exchange got hacked, there was high risk that all stored Bitcoin in accounts will be lost. Vitalization of Bitcoin and increasing big firms’ interest means that the encoded key becomes 3 for Bitcoin transactions to disperse the risks. Even when the exchange got hacked, users’ bitcoin can be protected safely with this introduction.
Different enterprises introduce security solutions from confirming user’s information such as Bitcoin transfer, balance display, transaction record, etc. to real transactions in order to provide a secure environment and highly focusing on secure service. Therefore, as part of this, IDS B2B is protecting customers’ assets the best we can do by enlarging the Bitcoin base as a core task and by providing prompt reply service to customers that are using our platform.