BTCJam, a US bitcoin P2P lender, announced it is shutting down. The reason are regulatory challenges around bitcoin and the difficulties they faced in introducing Bitcoin technology to poor communities.
In a blog post the company said it is stopping the extending of new loans, starting from May 25. Those who have outstanding loans will have to continue repaying them. The repayment functionality will remain active until the loan is either repaid, or defaulted. The clients who have bitcoin stored with BTCJam have until July 1, 2018 to withdraw it.
“We extend sincere thanks to all our lenders, borrowers, collaborators, investors, and everyone who believed in our dream of working together to provide access to fair credit without borders. It’s a mission we still believe in”, said BTCJam
BTCjam was founded in late 2012 and is among the oldest P2P bitcoin lenders.
In October 2013, BTCjam was accepted into the 500 Startups accelerator program and secured seed financing from Ribbit Capital, 500 Startups, FundersClub and Bitcoin Investment Trust. BTCjam secured their Series A fundraising round in January 2015, led by Foundation Capital (investors in Netflix and Lending Club), Ribbit Capital, 500 Startups, FundersClub, Bitcoin Investment Trust and Pantera Capital.
BTCJam had over 100 000 clients and had extended loans worth over $13 million.
Other bitcoin P2P lenders are Bitbond, which got a German license several months ago, and BTCPop.