DX.Exchange

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DX.Exchange
DXexchange.jpg
Founded 2017
Headquarters Tallinn, Estonia
Key People Daniel Skowronski, CEO
Employees 50-200
Products Cryptocurrency Trading Platform
Twitter @DXdotExchange
LinkedIn Profile
Facebook dx.exchange
Website DX.Exchange Home


DX.Exchange, a cryptocurrency trading platform, offers cryptocurrency and blockchain-related services to businesses and customers and plans to trade tokenized U.S. securities. The company has offices in Estonia and Israel.[1] It is owned and operated by Coins Marketplace Technologies, which is based in Estonia.[2][3]

Bankruptcy

DX.Exchange announced in a blogpost on November 3, 2019, that it was suspending operations immediately as it looked to merge with another company or be acquired, leaving open the possibility that it could resume operations. It blamed the high cost of security and IT development for the closure. The blogpost stated that customer funds were safe and also included instructions about how to withdraw them.[4]

The Times of Israel reported on November 24 that DX.Exchange was actually run by CX Technologies, an Israeli successor to SpotOption, SpotOption operated DX.Exchange according to the report. SpotOption was raided by the U.S. FBI in January 2018 as part of a crack down on Israeli binary options scams. According to the news report, SpotOption shared offices with CX Technologies in Israel. Employees of CX Technologies petitioned the Israeli government in late October to close the company, which they alleged operated a cryptocurrency trading platform, for failure to pay salaries.[5]

According to The Times of Israel, DX.Exchange was operated by Coins Marketplace Technologies OU, which is 100% owned by Limor Patarkazishvili. Her husband, Malhaz Pinhas Patarkazishvili, owns 90% of the shares in CX Technologies Ltd. The remaining 10% of those shares are owned by Daniel Skowronski, CEO of DX.Exchange.[6]

Products and Services

DX.Exchange is a licensed cryptocurrency-to-cryptocurrency, fiat-to-cryptocurrency, and cryptocurrency-to-fiat trading platform based in Estonia. The company also plans on offering tokenized stock trading starting January 7, 2019. According to the company's website, DX.Exchange employs over 70 employees for research and development globally and their exchange uses Nasdaq's matching technology to facilitate trades as well as its market surveillance software.[7]

A week after its launch, the exchange experienced widespread criticism for security issues that could potentially leak private user information. DX announced that it had applied a security patch to the exchange's software to rectify the issues, though critics said their response was slow.[8]

Tokenized Stocks

DX.Exchange plans to allow customers to buy stocks for 10 companies listed on the Nasdaq exchange, including Apple Inc., Facebook, Amazon.com, Microsoft, Netflix, and Nvidia, using securitized digital tokens. These tokens, which are based on the Ethereum platform, will be bought on behalf of customers by DX's partner company, MPS MarketPlace Securities Ltd., a financial trading and custody company based in Limassol, Cyprus. They will also be purchasable using cryptocurrency as well as fiat currency. Once purchased, they will be held on behalf of token holders in a segregated account. DX plans on testing the demand for such services, eventually expanding them to New York, Tokyo, and Hong Kong, if they are successful.[9][10]

Licenses

DX.Exchange holds operating licenses from the Estonian Financial Intelligence Unit. The first license allows them to provide services to exchange virtual currencies against fiat currencies. The second license allows them to provide virtual currency wallet services.[11] DX.Exchange CEO Skowronski, told Bloomberg that DX is fully authorized to operate in the European Union, but does not operate in the U.S.[12]

References