Over the last few years, there have been many high profile cases involving exchanges such as hackings, exit scams and fraud to name but a few. It’s safe to say that these big events have somewhat tarnished the reputation of the Crypto industry and have highlighted the need for more regulation and security within the space.
Therefore, when we had the chance to partner with an EU Compliant digital asset exchange with a key focus on security and transparency, we were delighted to take this opportunity.
Eterbase is a Slovakia based Digital Asset Exchange which is compliant with all laws and regulations of the European Union such as GDPR and ALMD4/AMLD5.
Fresh from the news of signing their first Treasury Gateway partner, I speak to CEO Robert Auxt about a number of topics and his ambitions for Eterbase going in to 2020.
Hi Robert and thank you for taking the time to speak with The Daily Chain. Firstly, could you please provide a bit of background about yourself?
My name is Robert Auxt and I am the CEO of Eterbase.com an EU compliant digital asset exchange. My background is in the legal and financial worlds. I studied in macroeconomics and started my career in investment banking and hedge fund management, became a financial regulator for the government, and eventually became a member of the board for the European Investment Bank.
What was the driving force behind starting Eterbase Exchange and did you face any challenges in creating your own exchange?
It was very quickly clear to me that our current financial systems are inefficient and lack transparency which is a dangerous combination. With the advent of blockchain technology, I saw a clear opportunity for legacy financial institutions to improve in both efficiency, transparency, and security. However, as blockchain and cryptocurrencies were still in their infancy there were many barriers to entry.
Bringing these two worlds together in a compliant, legal, and transparent manner was the driving force behind Eterbase. We are still young, and have faced many challenges and we will certainly face more as we continue to grow month-over-month. Our first challenge was establishing compliancy to EU regulations and building an exchange from the ground up that offered institution level speeds and security.
Fleets of lawyers were employed for the former, and fleets of developers have been working tirelessly on the latter. What we have now is a fully EU compliant digital asset exchange with bank level security features and the ability to handle up to 15 million transactions per second.
Eterbase is fully compliant within the laws of the European Union for GDPR and AMLD5. For the uninitiated, can you explain the significance of this and how this differs from other cryptocurrency exchanges that aren’t?
As regulators catch up with cryptocurrency technology it is getting more and more important for exchanges and blockchain projects to establish compliance within the jurisdictions they operate. Those that do not will soon be facing increased pressures from their respective governments.
As a fully compliant exchange, we ensure that we will be able to operate for years to come while also providing the security, privacy, and confidence our users deserve.
It was recently announced that XBASE, the native token of the exchange, is not recognised as a security by Allen and Overy – a highly reputable law firm. What benefits and bonuses does this provide you and the user with?
The XBASE token will be used in many different ways throughout the Eterbase ecosystem. Currently, users can lock up a certain amount of XBASE and secure access to premium membership levels on the exchange. They are free to unlock the tokens instantly at any time. While the tokens are locked, users will have access to features like free daily airdrops of XBASE, newly listed tokens, and EBASE. Premium members also enjoy lowered trading fees, and even negative trading fees.
New project tokens that are listed on the exchange must also purchase and lock XBASE, so as the exchange grows, the supply will diminish significantly. Already we have over 30% of our tokens locked and expect that to increase to 50% within the next 6 months.
Many people are interested in the negative trading fees that Eterbase offers and the partnership with Darkpool Liquidity. Can you briefly explain these how these two will work with providing the user the necessary liquidity to trade effectively on the platform?
Most exchanges take a fee from both sides of any trade. There is the ‘market maker’, the one who places the trade on the books, and the ‘market taker’, the one who buys or sells the trade off the books. Negative trading fees means we split the market maker fee with the premium member who placed it, depending on their premium tier.
This incentivizes traders, especially high volume traders, to place orders on the books and provide liquidity. It even allows these traders to employ strategies that wouldn’t normally be profitable because they still get paid just for making the orders. Shortly we will be releasing an open-source trading bot as well, and will be making this available to all our users so they can take advantage of negative trading fees.
Time for your elevator pitch. In such a highly competitive space, why do you believe Eterbase is the exchange that will become a top player and see off your competition?
With our focus on compliance, our unique suite of offerings for both traders and blockchain projects, and our vision for the future, Eterbase is here to stay. As regulations become more strict, many non-compliant exchanges will have to shut their doors.
Our exchange is built from the ground up to provide bank level security, enterprise level speed, and will remain fully compliant with regulations to ensure that it is and will remain the E.U.’s premier digital asset exchange.
Where do you see Eterbase evolving over the next 6-12 months and what will the main focus be?
It is a very exciting time for us, and we are working hard on many initiatives right now. We plan to onboard at least 50 new treasury clients in the next 6 months, P2P lending is coming soon, card payments acceptance for FIAT top-ups and withdrawals, our open source trading bot named Eterbot will be made available to all users, a suite of DeFi products are in the works, major mainnet tokens like EOS, Stellar, XRP, Tron, Burst, and Cosmos will be listed to name a few. In addition to this many more large and exciting partnerships will be announced as we are able.
Is there any other exciting news or announcements you can share with us?
We are proud to announce our first treasury partner: Ferrum, the DAG based interoperability network will be listed soon and airdropped to all our premium members. Ferrum’s interconnected line of FinTech products empower millions of individuals around the world to take control of their financial lives and is the first of many treasury clients to join Eterbase.
I thank Robert for his time.
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