BitcoinZAR
Active Member
I dont see how there should be a need for any exchange to have funding for customers, or be insolvent.
When you are a customer you deposit funds to make an order. The funds in an order belong to the customers, not the exchange.
You can only create an order if you already have funds in your account.
The buyer and seller BOTH have to have the Rand / Bitcoin in their accounts in order to create the buy or sell order.
The exchange charges a fee, so they are making some money on the trade.
Since the order only uses the customers funds on both sides, what difference does it make if the exchange gets funding or not? They are not market making, or selling to the customer....the exchange is between the buyer and seller on the exchange, and the exchange charges a fee for providing the platform.
Being insolvent can only mean they are dipping into customer funds.
Having funding should have nothing to do with customer orders.
Even if there is zero funds that belong to the exchange in their actual wallet and bank account, the exchange should be still able to operate just on customer funds, since they are the ones making and taking the orders.
There must be a reason for the exchange not sending the bitcoin upon withdrawal. I imagine it might be something to do with the user possibly not being 100% verified, but not sure.
It might sound simple for someone at an exchange to simply send the bitcoin or Rand manually, but that would throw the integrity of the entire platform out of sync. The exchange accounting would not balance. I would guess that although possible, and easy to manually send, the account would probably need to be closed permanently or maybe even the exchange taken offline for a short while in order to 'tinker' with values. To me it sounds like the system is not working 100% correctly, and its better in the long term for them to fix whatever is the problem, rather than a quick fix. If one person has the issue, chances are others do too.
When you are a customer you deposit funds to make an order. The funds in an order belong to the customers, not the exchange.
You can only create an order if you already have funds in your account.
The buyer and seller BOTH have to have the Rand / Bitcoin in their accounts in order to create the buy or sell order.
The exchange charges a fee, so they are making some money on the trade.
Since the order only uses the customers funds on both sides, what difference does it make if the exchange gets funding or not? They are not market making, or selling to the customer....the exchange is between the buyer and seller on the exchange, and the exchange charges a fee for providing the platform.
Being insolvent can only mean they are dipping into customer funds.
Having funding should have nothing to do with customer orders.
Even if there is zero funds that belong to the exchange in their actual wallet and bank account, the exchange should be still able to operate just on customer funds, since they are the ones making and taking the orders.
There must be a reason for the exchange not sending the bitcoin upon withdrawal. I imagine it might be something to do with the user possibly not being 100% verified, but not sure.
It might sound simple for someone at an exchange to simply send the bitcoin or Rand manually, but that would throw the integrity of the entire platform out of sync. The exchange accounting would not balance. I would guess that although possible, and easy to manually send, the account would probably need to be closed permanently or maybe even the exchange taken offline for a short while in order to 'tinker' with values. To me it sounds like the system is not working 100% correctly, and its better in the long term for them to fix whatever is the problem, rather than a quick fix. If one person has the issue, chances are others do too.
