The new exchange will operate on a model similar to Robinhood where customers can pay monthly fee or subscription fees to access trading tools. There will no commission fees on transactions. Using NASDAQ will help assure customers of safety, trust and security they are looking for.
A new cryptocurrency exchange called DX Exchange will launch on the NASDAQ infrastructure according to Daniel Skowronski, who will be the exchange’s CEO, in a recent interview.
Working with NASDAQ will mean the exchange will have to meet the highest regulatory standards and this will help them be able to avoid some common errors in other crypto exchanges according to Skowronski. This is in addition to benefiting through the NASDAQ brand name and technology and regulation.
Using the NASDAQ security framework will help assure clients are getting what they are looking for: namely security and safety according to the CEO. Most of these are under development where NASDAQ is looking at other exchanges such as Genesis for security cues.
The exchange is also hoping to get some more licenses to operate elsewhere. It recently acquired Estonian licence and a Cypriot market maker licence. However, it is expected that it will not allow U.S. customers to trade on th exchange at launch due to regulatory hurdles.
The exchange will most likely start popular cryptocurrencies including Bitcoin, Bitcoin Cash, Ethereum and Litecoin. It will then expand to include 20 to 30 other coins. Like Robinhood, it will not be charging commission fees on trades but will have a subscription model. Therefore, where traders can pay a monthly fee of around 10 euros. However, it will not be an optional “premium membership” style like on Robinhood.
However, it will have to vet coins before listing and coins will not list just because they are paying, said Skowronski. The first stage of the vetting process for new coins is application. Thus an interview with the third being a legal opinion by the in-house teams. Therefore, due diligence in inspecting the team and the whitepaper.
Therefore, listing of the coins will follow a similar approach by many other exchanges to judge whether they should list. Binance also said that it rejects 97 percent of the applicants hoping to list on it.
Cryptopia is among those exchanges that use a different approach to list coins. It offers coins that are not found elsewhere. The exchange says there is a genuine demand for obscure tokens. Since that it is not the job of the exchanges to judge but to stick to executing trades.