PayRate42, a leading authority in rating payment processors, has conducted a thorough examination of Bitinvestor, a Denmark-based cryptocurrency exchange platform. PayRate42 maintains a primary focus on protecting merchants and consumers through transparent evaluation, particularly scrutinizing High-Risk Payment Processors (HRPP) operating outside established regulatory frameworks.
Bitinvestor, positioned as a Denmark-based cryptocurrency exchange platform, claims to prioritize secure transactions for buying and selling cryptocurrencies. However, PayRate42‘s analysis has uncovered significant issues regarding Bitinvestor’s compliance practices.
Despite Bitinvestor’s assertions of providing requisite compliance information and holding relevant licenses, PayRate42 has rated Bitinvestor as ORANGE in terms of compliance. This rating underscores a serious concern: Bitinvestor’s involvement as a payment processor for unauthorized offshore online casino and gambling platforms in the crypto sector.Â
While this facilitation of crypto casinos may be strategic for Bitinvest and perhaps secured by special structures, we have doubts as to whether this poses problems for players. On the one hand, we see significant problems in the enforcement of chargebacks from the players of facilitated casinos. Officially, Bitinvestor sells cryptocurrencies to casino players that are automatically transferred to the user wallet at the online casino. In our experience, this three-dimensional relationship makes it difficult or impossible to enforce chargeback claims.
The ORANGE rating indicates a clear gap in Bitinvestor’s compliance procedures, potentially exposing users to heightened risks and regulatory uncertainties. In particular, we have concerns that players of unregulated offshore casinos may get the impression that the casino might be legitimate because of the involvement of an registered EU crypto services provider.
Bitinvestor’s purported commitment to transparency and security seems to falls short in light of these compliance deficiencies. Users must exercise heightened caution and consider alternative platforms with demonstrably robust compliance measures until Bitinvestor rectifies these issues.
About Payrate42
PayRate42 is a rating agency specializing in payment processors. Our main goal is to protect merchants and consumers by providing transparency through the evaluation and rating of financial service providers. High-Risk Payment Processors (HRPP) operating outside the established regulatory framework are our primary focus.
