DX Exchange, which is set to launch next month, is the first cryptocurrency exchange powered by NASDAQ.
«The advantage of this cooperation is threefold: the brand name, the technology and the regulations», – said DX Exchange CEO Daniel Skowronski.
Skowronski said that their technology would rely on NASDAQ’s infrastructure, such as its matching engine – used by over 70 exchanges all over the world.
Skowronski noted that working with NASDAQ mandates that the exchange meets the highest regulatory standards, thus avoiding common errors and such as double count trading, and in general will prevent fake volumes.
The above-mentioned standards include a recently acquired Estonian license, as well as a market maker license from the Cypriot regulator, CySEC. This framework will allow DX to offer its clients the entire variety of the crypto trading options and to hold customers funds and deposits.
Customers from the USA will be excluded from approaching the platform, at this point. However, the management is currently engaged in a dialogue with the USA regulators to obtain a federal license.
Customers will be able to purchase cryptocurrencies with fiat money, to trade on a token-to-token basis, as well as to convert the coins back to fiat and to withdraw it.
At first, the exchange is expected to feature the top 6 coins, such as Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. At the second phase will feature the top 20-25 coins, as well as some smaller tokens (both utility and security).
«We are not going to list coins, just because they pay us. Those who are worthy – will be listed», – said Skowronski.
Coins that want to apply for listing, will go through a three-step process:
- Initial application
- Legal opinion by the in-house team and due diligence: inspecting the team and the whitepaper.
The exchange will not charge fees for trading operations, but the traders will pay a monthly fee of around 10 EUR. Skowronski said that the KYC process will be done by submitting an email and phone number and is expected to be very fast and friendly.
Cybersecurity is another major concern of cryptocurrency exchanges. This issue will also be addressed with the help of NASDAQ’s infrastructure, and Skowronski promises to hire the best specialists in the field to avoid hacks and other malicious attacks.
The exchange also offers an internal chat, that will allow users to interact and exchange views, as well as an aggregated newsfeed and information about the coins.
The company is led by three veterans of the trading industry. Skowronski was the CEO and Managing Director at OANDA Europe and Americas. The COO Raz Kaplan was previously the head of Risk Management at SpotBroker. And the CTO Yaron Ben Shoshan was the Director of Strategic Development at Forex Manage.