The carmaker “Proton” suspends sales of cars with bitcoin

The carmaker “Proton” suspends sales of cars with bitcoin

This decision was taken by the automaker and the Malaysian regulatory authorities have nothing to do with it.

Dealer network of “Proton” in Selangor has decided on the use of bitcoin as means of payment. The problem is once again that the automaker has never endorsed this, stating that the company does not recognize the cryptocurrency as means of payment. As a result, the company has suspended cooperation with the local dealer before the end of the investigation.

Thus, the “Proton” can harm yourself, wanting to annoy the other. The owner of the dealership, Tony EY, who was trying thus to promote sales, said, according to reports, consumer demand increased significantly after the start of sales with bitcoin.

“I posted the banner this past Thursday evening, and the interest in us increased the next day. Every day we were visited more than 10 people. We began calling often, asking whether we accept bitcoins,” said the intractable Mr. EY, who, according to the individual message, plans to continue to accept bitcoin.

Position of the company “Proton” is as follows:

“Proton welcomes innovative sales methods, which help to attract attention to our cars. We, however, ask our regional representatives to exercise due diligence and caution from promotional activities, which was not coordinated with the leadership of the company” — said representatives of the company.

The rapid growth of bitcoin

It is not that the “Proton Holdings” does not benefit from the growth of cryptocurrencies. Sales of “Proton” fell by almost 2% in 2017. The sales decline resulted from the decrease in the number of orders for cars for taxi services, not because of lower retail sales. But, nevertheless, the sales volume decreased from 72 291 vehicles up to slightly less than 71 000 last year.

Mr. EY still managed to film a banner that advertises the sale for bitcoin, but however, he has developed a workaround of sales for the cryptocurrency. Customers can make advance payments or the full value of the vehicle to the personal digital wallet of the owner of the dealership. Despite the recent fall of bitcoin, it is still promising currency, especially given the fourfold increase in its value in 2017. He plans to charge an additional fee in the amount of 2% of the value of the vehicle to compensate for sharp changes in the value of bitcoin.

The use of bitcoin as means of payment is the latest effort by Mr. EY to attract clients in terms of tax on goods and services, introduced a few years ago, which had a negative impact on sales.

“Bank Negara” in Malaysia does not consider bitcoin or altcoins as a legal means of payment, pointing out that users of cryptocurrencies can protect their interests in the courts. At the same time a complete ban of the use of cryptocurrency is also not considered. According to the requirements of the Central Bank of Malaysia exchange cryptocurrency must provide reports on their activities. Recently, the Department of revenue of Malaysia has suspended the account Luno at bitcoin exchange in London, pending an investigation of violations of the tax legislation.

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