Magnr announces back-office blockchain project

Magnr, a Bitcoin financial services provider, is working on a blockchain "Project Kodo", and has also announced that Colin Kwan will take over as the new chief executive officer and oversee the development, as reported by IBTimes.

Kwan, a former Deutsche Bank and UBS employee, is expected to bring his technological and investment banking experience to the project. He said the "secret" blockchain project would aim at "inefficient back-office processes in the trading of financial assets".

While explaining the unregulated status of Magnr's Bitcoin derivative trading platform BTC.sx in the UK, he said:

"We reached out to the FCA and said we are going to be taking people's Bitcoin and lending them to other people to make trades...They came back and said we don't regard this as a regulated business, because we are not dealing with fiat currency."

He said Magnr is guarded against a black swan event like the affair. "Our trading algorithms are combined with a capping system to prevent the loss of client funds."

"We did lose money, however not a single client of ours lost money because of that default" recalls Kwan. "And where our client's positions were in the positive, in other words if they did a short sell, we paid these profits back out to them regardless of our own loses. I'm pretty sure that no other company can make the same claim."

He pointed out that the price of Bitcoin has not come anywhere near a 10%/1 tick movement since.

When asked if one no longer needs such a sturdy constitution to trade Bitcoin, he replied, "Oh I think you do".