As most of you know, we are getting ready to launch our revolutionary new exchange and trading platform. Whilst we have come across a few unexpected delays, we have also been working on and building towards making Ethbits the most kick a** platform possible. For those of you who are following our journey and waiting for our upcoming launch, we have summarized our efforts over the past few months. Enjoy!
Summary Key Points
• Ethbits is a registered Maltese company.
• We already have both operational banking and custody banking accounts agreed so that we can accept clients’ money. The former is opened and the latter due to be integrated via an API in the coming weeks.
• We are integrating a customer solution to allow each client to elect to have an EU IBAN in their own individual names. This will mean that they can run the account in a similar way to a checking account and will be able to receive and send money to third parties across the world.
• We are waiting for confirmation when we will be able to provide a Pre-Paid MasterCard but expect this to take place this quarter or the first quarter of 2019.
Ethbits will also be applying for a VFA Virtual Financial Services License with the MFSA or Maltese Financial Services Authority. We are allowed to operate under transitional rules for the new VFA regulation and will eventually be authorised and regulated by the MFSA.
• This license is a comprehensive license very similar to a MFID category 4. It will allow Ethbits to operate a regulated exchange across the whole of Europe. We are able to market and operate in member states and we are also able to take on Traders and provide them with a regulated framework to work under.
To run an exchange you are legally required to have two seperate banking accounts. An operational accounts and client custody accounts. The former allows us to operate the business and the later allows us to accept client’s funds and hold these as a custodian. You are required to have both accounts as client’s funds need to be segregated and separated from the funds of the business. Many existing exchanges have had difficulty undertaking this mammoth task and subsequently customer funds are mixed and muddled with company funds.
As many of us know, just getting an operational account is hard but we have actually secured both. This is relatively unheard of for an Exchange that is not yet operating at a fully functional level and we are the first to have secured banking this early on in our formation. If you consider the company was opened in August 2018 due to a change of domicile to Malta, and we have agreed solutions across the board from accepting fiat to outwards transmission, it is a great achievement.
Key Milestones we are trying hard to deliver.
• ¬ Stage 1: Operational Accounts: Complete
¬ Stage 2: Client Custody accounts: In process of API integration expected Oct.
¬ Stage 3: Individual IBAN ability: Nov/Dec integration.
¬ Stage 4: Prepaid Credit Cards Q4 2018/ Q1 2019 integration.
Malta has established legislation that regulates the offering of certain services know as Virtual Financial Asset Services. This includes services such as.
¬ Platform exchanges
¬ Portfolio management
¬ Investment advice
We will initially be operating under transitional rules until we apply for full regulation under a Category 4 license similar to that of a MFID Cat4 license.
Additionally, we will also be taking advantage of the Portfolio Management and Investment Advise allowances as the Ethbits directors hold all the required qualification and licenses to provide these services. This will add an additional capability that most of our competitors simply will not have or even be aware of.