Mt. Gox has been through a lot in the last months. After problems with banks and regulators, now the payment processor BIPS has abandoned the Japan-based exchange and chose Bitstamp to replace it.
Mt. Gox is struggling to keep the title of the biggest Bitcoin exchange in the world and this bad news is not going to help the company, since BIPS has been growing a lot. The Danish company was recently featured in Bitcoin Examiner because of the new service Danske Bitcoin.
The two-year-old payment processor, based in Copenhagen (Denmark), is actually considered the largest provider of Bitcoin payments in Europe. The company, founded by Kris Henriksen, had been using Mt. Gox to convert between fiat currency and Bitcoin until now, but has made the decision to change in the last few days. The reason? Mt. Gox is slow… As the number of sell orders keep increasing at Bitstamp with more and more merchants embracing the crypto-payments, the exchange continues to be slow when it comes to process withdrawals, explained BIPS.
Kris Henriksen didn’t provide numbers or specific data, but the founder of the payment processor says that working with Mt. Gox was becoming impossible. “In BIPS’ case, each withdrawal had a pending period of over eight weeks. This was devastating on BIPS’ fiat buffer, as we process withdrawals in 1 to 5 business days”, he said. And then Bitstamp came along, promising to make it faster.
Adding this change to the recent problems at Mt. Gox, the exchange keeps losing market share. This week, for instance, the trading volumes on Bitstamp climbed above those reached by the Japan-based exchange.