Overview
Blockchain Currency Hub (Pty) Ltd, doing business as CURRENCY HUB, is a consultancy that allows accredited investors to trade cryptocurrencies through arbitrage strategy. It was established in 2018 and based in South Africa. Following the Financial Advisory and Intermediary Services Act, CURRENCY HUB is a legal agent of BLACK ONYX, an accredited financial services provider licensed and governed by the Financial Sector Conduct Authority (FSCA) in South Africa. The exchange is South African Reserve Bank (SARB)-approved with an FX intermediary license providing further support. The other Arb trading firms for buying Bitcoin in SA are: Future Forex and Koin Expert.
Platforms
CURRENCY HUB has no mobile application platform and only offers its products and services on the main website. The website is straightforward, with many informational resources and video tutorials to help traders navigate their crypto arbitrage strategy.
How crypto arbitrage works at CURRENCY HUB
With over 4000 trades spanning more than four years and zero losses, CURRENCY HUB is an expert in crypto-arbitrage. The founders have extensive experience in asset management and compliance, and they have created a sophisticated active-trading solution with zero exposure to Bitcoin that provides low risk returns. Users can be confident that the crypto arbitrage carried out by CURRENCY HUB is 100 percent legal because the regulator and forex counterparties who serve as their Authorized Dealers are familiar with the procedure and a legal opinion supports it. However, the premium is compressing and will not be that large for very long.
Getting started with crypto arbitrage at CURRENCY HUB
Here is the simplified process of registering with the platform for crypto arbitrage trading:
Before beginning the process, the trader should have documents required for FICA and a tax clearance certificate. These entail uploading ID, proof of address, three months’ bank statements, and proof of funds.
FICA (Financial Intelligence Center Act) and KYC (Know Your Client) are both common AML (Anti-Money Laundering) and regulatory requirements. Use DocuSign, a digital document that will be emailed to you for online signature, to sign an SLA.
Users must also open a personal CCM transactional crypto account with Investec Bank after registering with the exchanges’ Foreign Exchange (FX) division (Authorised Dealer). This document specifies the information that an applicant must provide for a Tax Clearance Certificate (TCC) for their yearly Foreign Investment Allowance (FIA).
Once the requirements above have been fulfilled, the exchange can move forward by trading your investment for arbitrage opportunities.
Regulations and risk prevention
CURRENCY HUB offers cheap transaction costs, first-rate assistance, extensive cryptocurrency liquidity, and optimal price execution through various institutional relationships with cryptocurrency exchanges, forex intermediaries, and over-the-counter (OTC) desks. Counterparty risk is the biggest threat to the arbitrage process, and risk management is highly important. As a result, the trading is managed by best-in-class service providers with a set amount of time on each exchange, repatriating the clients’ funds and profits daily into their bank accounts. The client is never exposed to Bitcoin and its fluctuations because of CURRENCY HUB’s access to a Bitcoin float, credit lines for crypto-pricing, and set forex rates.
The investor can view the trade and returns on a live spreadsheet at any time, and the authorized trader will keep their gains securely. At the very end of the cycle, the clients receive a detailed statement outlining their total profit and the premium obtained on their behalf for all 44 deals. A clean investment statement is then provided to their tax advisors.
For CURRENCY HUB to facilitate cryptocurrency arbitrage on a client’s behalf, a South African resident must meet several requirements. They treat each client as a qualified investor who requires a minimum of R250,000 to start with.
Fees
To reach the maximum offshore permit of R11m, CURRENCY HUB trades (on the clients’ behalf) up to 44 tranches with the R250,000 trading capital over a few months. After transaction fees, this intends to provide a variable total return based on the premium and exchange rate, which are currently approximately 3%. The earnings from every 44 trades are realized in ZAR and safely deposited in the investors’ private bank accounts. After the trading cycle is complete, the R250,000 trading capital and profits are instantly repaid.
One of many crypto-arbitrage participants on the market is CURRENCY HUB; however, many are forced to close their doors since they cannot provide net returns of 1% daily for their clients under the present low-Premium conditions. Given the low premium environment now in place, CURRENCY HUB provides a free arbitrage trading solution when the gross premium is between 1.5 percent and 2 percent and only levies a reasonable fee for handling the foreign exchange transfers.
Features unique to CURRENCY HUB
For the following reasons, CURRENCY HUB stands out from their competitors.
First, the firms that make up CURRENCY HUB are regulated financial services providers, administering the parts of the arbitrage service that are under the purview of conventional financial services, like the actual booking of foreign exchange for clients.
Second, CURRENCY HUB is a SARB-approved forex middleman that helps clients make outgoing forex transfers to buy cryptocurrencies overseas so they can engage in arbitrage. This license has various benefits for the service, including the ability to trade up to three times per day (exclusive to CURRENCY HUB) and actively trade the currency markets and produce up to 0.5 percent higher returns.
Third, by simultaneously hedging the FX exposure and securing a Premium, CURRENCY HUB has never suffered a single loss in 8000+ trades over more than five years. It ensures that their traders know what profits the client will make before agreeing to the trade. It means that the customer’s return is never impacted by daily fluctuations in the premium and the rand/dollar, keeping in mind that the client is never exposed to Bitcoin or the turbulent cryptocurrency markets. As a result, CURRENCY HUB is a provider of just crypto-arbitrage services.
Finally, the client communicates directly with CURRENCY HUB rather than numerous service providers spread out along the platform’s partnership chain. A skilled team that can expedite the procedure manages all FIA applications and correspondence with South African Revenue Service (SARS) internally.
Customer service
CURRENCY HUB has impressive customer service, from social media to full address details on their official website. Investment managers are always in close contact with clients to ensure transparency in the arbitrage process. The exchange has an option to request a call back from the investment managers in case of any inquiries. Though not fully comprehensive, the FAQ section on the website offers insight and answers to common investment questions from potential clients.