CoinPlus has successfully closed a first round of investment, which saw the firm add €172,500 to its coffers.

The Luxembourg-based bitcoin startup reports the seed funding will allow it to speed up the operational and technical development of its impending product and add new members its team.

Though not yet launched, CoinPlus is developing a multi-support payment processor and a currency exchange platform.

Regulatory framework attracts bitcoin businesses

The startup was incorporated last July, following a ruling by the Luxembourg financial regulator, which found that bitcoin could be used as a means of payment.

Thanks to that ruling, Luxembourg became an attractive jurisdiction for bitcoin entrepreneurs.

CoinPlus CEO Christian Bodt said:

“Luxembourg was the obvious choice for us. The country offers state-of-the-art technical and administrative infrastructure, providers at the forefront of technology, a government that is accessible and great open-mindedness. The Luxembourg market is also a safe bet for all the players in the financial world.”

Bodt said CoinPlus is starting the process of applying for the ministerial approval in Luxembourg. While aware that there are still a number of steps to take before it can reach that “grail”, he is optimistic that it will succeed. Additionally, Bodt said he expects another funding round later this year.

CoinPlus has been created and developed so far with the support of Technoport, a state-owned incubator located in southern Luxembourg.

Confident in bitcoin’s potential

As a Python developer with a background in financial industries, Bodt said he originally discovered bitcoin in 2010 and he quickly became interested in the concept.

He met with Gavin Andresen in 2011 and became convinced that he had to join the community, which he did with the creation of his first bitcoin client. Bodt was also active in the fledgling bitcoin communities of both London and Paris.

Bodt said that bitcoin as a currency has some advantages over the traditional monetary system:

“The advantage of bitcoin as a unit of account is that it can store value without any risk linked to other people’s actions. The euro, for example, requires confidence in both the European financial and political system and the European central bank.”

Luxembourg image via Shutterstock