Next month, NASDAQ will start featuring dx.echange: a centralized cryptocurrency exchange which will reportedly offer easy on-boarding process and zero fees for trading.
According to DX Exchange CEO Daniel Skowronski, the technology underlying the new exchange will rely on NASDAQ’s infrastructure, including the matching engine compatible with over 70 exchanges around the world.
“The advantage of this cooperation is threefold: the brand name, the technology and the regulations,” – Skowronski noted.
Being organized under NASDAQ’s mandates, the platform will meet the highest regulatory standards, thus avoiding the issues with bugs and errors typical of many other cryptocurrency exchanges. It will also be backed by a recently acquired Estonian license and a market maker license provided by the Cypriot regulator, CySEC.
Thanks to this framework, DX Exchange will be able to offer its users a wide variety of the crypto trading options. The customers will be allowed to purchase cryptocurrencies with fiat money, convert crypto coins to fiat, withdraw funds from the exchange and trade on token-to-token basis.
“We created a one-stop-shop for exchanging fiat and crypto, holding coins and as well as wallet services,” – Skowronski specified.
At first, the platform is expected to feature the top six coins, such as Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. These will be followed by another 20 to 25 top cryptocurrencies.
“We are supporting blockchain technology. And the way we can help this ecosystem to progress is by vetting the tokens and making sure the good ones are promoted. We are not going to list coins, just because they pay us. Those who are worthy – will be listed,” – DX Exchange CEO explained.
Instead of charging commission fees for trading operations, the platform will demand fixed monthly payments from its users, the amount to be charged being around 10 Euros. KYC procedure will require submitting users’ e-mail addresses and phone numbers.
Cybersecurity-wise, the platform will rely on NASDAQ’s infrastructure as well. At the same time, Skowronski promised to hire a powerful team of specialists in order to combat the risk of hacking.
“People are looking for security and safety. We’re trying to be very clear so that the customers will know what they are getting,” – he said on the matter.
Apart from Skowronski himself, who once was the CEO and Managing Director at OANDA Europe and Americas, DX Exchange’s top management includes the COO Raz Caplan (the former head of Risk Management at Spot Broker) and the CTO Yaron Ben Shoshan (the former Director of Strategic Development at Forex Manage). A 72-member-strong research and development team from Israel is currently working on setting up the platform as well.
It should be noted, however, that the exchange will not be available to US citizens due to yet uncertain legal status of a number of crypto assets in the country. However, the management is currently engaged in a dialogue with the US regulators to obtain a federal license.
Certain pieces of unofficial information about Intercontinental Exchange (ICE), the paternal company of the New York Stock Exchange, being involved in developing an online platform that would allow investors to trade bitcoins with the use of swaps, serves as a reason for optimism too, as this tendency may eventually lead to the recognition of the major cryptocurrencies by U.S. regulators.