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Below is our recent interview with Bilal Hammoud, the Founder at NDAX:
Q: Could you provide our readers with a brief introduction to the National Digital Asset Exchange?
A: The National Digital Asset Exchange Inc. (“NDAX”) is a Canadian-based cryptocurrency exchange designed for both first time users and experienced traders. Our advanced trading platform is built on institutional-grade technology capable of handling over 1MM transactions per second. NDAX offers a broad portfolio of cryptocurrencies that can be traded directly with Canadian dollars, including Bitcoin (BTC), Ripple (XRP), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH) and EOS.
Our mission is to provide individuals and institutions a world-class experience to buy, sell, and store digital assets in a fast, secure and affordable manner.
Q: What is the best thing about your exchange that people might not know about?
A: Our banking relationship is a significant competitive advantage. Being integrated into the Canadian banking network allows NDAX to offer clients: same day settlement, low fees, and full security on CAD and USD transactions. Clients’ funds are held in a segregated Canadian bank account and are fully guaranteed.
Q: What does it take to be listed on NDAX?
A: NDAX considers the following risk management factors when deciding to list a coin:
1. Market Capitalization: Liquidity in the marketplace is a core tenant when choosing to list a token/coin. We generally list coins with a minimum market cap of $500MM. There needs to be enough demand and interest for that particular asset to ensure clients can trade it freely with minimal slippage.
2. Utility: There should be utility associated with purchasing, holding, or spending the coin. The founding team and executive leadership should be able to articulate the business operations, strategy, vision clearly, and offer compelling reasons why the coin should exist. Assuming the information is publicly available, NDAX also applies KYC requirements to founders and leaders.
3. Security: An assessment of technology security is performed, including a robust bug bounty program and track record of improving their source code after a vulnerability is disclosed, and a security audit conducted by a third party.
4. Regulation: As a registered Money Services Business (MSB), the listed coin cannot affect our ability to meet FINTRAC’s compliance obligations, including Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) procedures.
Q: Does the cryptocurrency market have a liquidity problem?
A: In the case of cryptocurrency, one crucial aspect of liquidity is the ability to be converted into fiat, on demand, without any difficulty. Today, there is an extensive network of trusted exchanges globally — which is a crucial component in determining levels of cryptocurrency liquidity. When Bitcoin was introduced in 2009, it initially had little to no value. At the time of writing, Bitcoin’s market cap is around USD$110B and is one the best performing assets over the past decade. Bitcoin is significantly gaining momentum as both, a store of value and an accepted method of payment. However, Bitcoin has yet to be fully embraced by banks, institutions and government regulators. Even though Bitcoin is a major asset class, some governments have chosen not to support it — negatively impacting its liquidity. Many major banks, particularly in North America, will not open a bank account for companies that are associated with Bitcoin or any cryptocurrency.
Integrating within the banking system will improve the speed, security, and affordability of getting your money in and out of crypto. A key aspect of earning the trust and building a relationship with financial institutions are for exchanges to implement a robust compliance regime that complies with Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.
Q: What’s next for NDAX? Do you have plans to grow, expand or diversify?
A: NDAX currently offers the following coins: Bitcoin (BTC), Bitcoin Cash (BCH), Litecoin (LTC), Ethereum (ETH), Ripple (XRP), and EOS. NDAX plans to add to this list on a monthly basis. Our goal is to be the one stop exchange for our clients to buy Bitcoin and other digital currencies.
NDAX intends to move into new markets in the near term.
NDAX is planning to issue a Security Token Offering (STO) and make it available globally. The token will offer users a range of features, including:
• Discount on trading fees.
• Token will be paired against major cryptocurrencies