dx.exchange by Nasdaq
Nasdaq is reportedly set to launch a regulated cryptocurrency exchange called dx.exchange by next month. In an interview with Finance Magnates, exchange CEO Daniel Skowronski noted:
“The advantage of this cooperation is threefold: the brand name, the technology and the regulations.”
Daniel added that the new crypto exchange would look to take advantage of Nasdaq’s “matching engine”, which is often used by more than 70 exchanges worldwide. According to the CEO, dx.exchange will comply with strict regulatory requirements. He explained that this will help eliminate typical errors such as “double count trading” and “fake volumes”.
Estonian and Cypriot Regulatory License
Regulatory standards for dx.exchange will consist of an Estonian license and a license from Cypriot regulator CySEC. The DX will offer customers a number of ways to trade cryptocurrencies, while also providing a secure platform where they can store their digital assets. Notably, US-based users will not be allowed to use dx.exchange for now due to regulatory restrictions. This could change in the future because the exchange managers are currently trying to obtain a federal license from American regulators.
Meanwhile, for traders who are allowed to use the Nasdaq-powered exchange, there will reportedly be an easy and convenient way to purchase cryptocurrencies with fiat currency. The exchange will also allow for crypto-to-crypto trading. Daniel stated:
“We created a one-stop-shop for exchanging fiat and crypto, holding coins and … wallet services.”
Coins Supported by Nasdaq Crypto Exchange
Initially, Nasdaq’s crypto exchange will support trading with Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH). Then, the exchange managers plan to facilitate trading with more of the “top 20-25 coins” and a few “utility and security” tokens. In case you’re wondering what the difference is between a “token” and a “coin”, please read this.
In regards to which cryptos will be listed in the future and the criteria to be eligible for listing, Daniel said:
“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.”
Requirements for Cryptos to be Listed on dx.exchange
According to the Finance Magnates post, there will be three requirements that will have to be met in order for a crypto to get listed on its exchange. The first requirement is to fill out a general application. Provided that the application is accepted, the next step will be for the representatives of the crypto to appear for an interview. Then, the last step will involve the exchange managers carefully examining the crypto’s whitepaper and determining the overall legitimacy of the crypto project. Should these requirements be met successfully, then the crypto would get listed on dx.exchange.
Fee Structure for Exchange
Exchange users will pay 10 Euros monthly in order to trade. Also, there will be no other fees for crypto trading. In order to satisfy KYC (Know Your Customer) requirements, traders will have to provide their personal or business phone number and email address. Security of the exchange will be a top priority, so that users’ funds are protected. Daniel says he will employ the most skilled security experts in order to ensure consumer safety and security.
dx.exchange will have a built-in chat application that will let crypto traders communicate with each other and share trading advice. There will also be an aggregated news feed and general information on the cryptos listed on the exchange.
Highly Skilled & Experienced Team
Daniel Skowronski is quite experienced in the retail investment business, formerly serving as Managing Director at OANDA, a leading foreign exchange platform. Other notable team members for Nasdaq’s new cryptocurrency exchange include Raz Kaplan who used to work as Risk Management head for SpotBroker. There’s also Yaron Ben Shoshan who has been appointed chief technical officer for dx.exchange. Yaron previously served as Director for Strategic Development for Forex Manage.
Reportedly, Nasdaq’s crypto exchange department has employed 72 researchers based in Israel. This team of researchers is expected to contribute to the successful launch of the trading service and manage its ongoing development and maintenance.