Bittrex launch new international exchange, MAID re-list?

exchange
bittrex
maidsafecoin

#1

@dugcampbell, @SarahPentland, @nicklambert

Bittrex will release a new international exchange which will open up for new coins to be listed.

As the exchange will be placed in Europe/Malta it maybe a good thing to try and get MAID re-listed?, as the harsh securities laws of the US won’t affect this exchange. Hopefully Bittrex Malta will also provide fiat deposite/withdraw as Bittrex currently do for their US customers

https://www.bittrexmalta.com/

“Bittrex Malta is designed to give innovative coins and tokens a streamlined approach to not only be listed on the platform, but also to continue building trust and a larger global footprint. Please check back soon for updates about how to get your token listed on Bittrex Malta.”

“Every digital asset listed on the Bittrex Malta platform will be available for our international network of partner exchanges to launch (consistent with their local laws), increasing the adoption of this innovative technology around the world.”

“Bittrex Malta is designed to operate within the regulatory framework established by the European Union and Maltese Government. The company intends to apply to become a regulated virtual financial asset exchange under Maltese laws, and it will operate in a manner consistent with the Maltese regulatory framework relating to virtual financial assets.”


#2

Thanks for the heads up @tobbetj, we’ll look into it.

I remember when MAID and quite a few others were delisted in early 2018 we were also removed from UpBit which is a partner of their’s based in Singapore. It seems these 2 organisations seem to mirror the coins they list/de-list:. So there is some evidence that jurisdictions to matter to certain organisations, but as I say we’ll check and let you all know if this is something we can take further.


#3

You’re making a good point Nick, does their partners auto-mirror or are their other reasons.

When I read their statement and what seems like their intention I got the feeling that they would like to support projects which they couldn’t do in the US, their for one reason not to allow US customers.

What are their motivations for setting up an European exchange, pure tax reasons, grab market shares by focusing on european customers, be able to trade coins which don’t risk of fall to US securities regulation, support european projects. If their goal is for example to reach european customers more direct besides let’s say tax reasons then they may also have more to win by supporting european projects.

Is their some way to leverage, what is their motivation, are their carrots that can be dangled in front of them, do they wish to still stand on the station when the train leaves (alpha3-alpha4). J :wink:

Did some research to see if could find support for some of the hypothesis.


#4

https://support.bittrex.com/hc/en-us/articles/360001354486-Bittrex-Announces-Formation-of-Bittrex-International

Bittrex International
The company will own and manage ventures outside the U.S., including new Bittrex Malta platform which will own and manage a global collection of innovative blockchain technology-focused businesses operating outside of the United States.”**

” The mission of Bittrex International is to be a driving force in the blockchain revolution, increasing adoption ((market expansion?)) of this innovative technology around the world. The company will own and manage Bittrex’s international businesses.”

Bittrex Malta is designed to give innovative coins and tokens a streamlined approach to not only be listed on the platform, but also to continue building trust and a larger global footprint.” (Want’s to add new coin/tokens?)

Every digital asset listed on Bittrex Malta will be available for our international network of partner exchanges ((New opportunities for new markets?)) to launch (consistent with their local laws).
((Allow for Upbit re-list and more?))

The platform will reach customers in Latin America and the Caribbean.
September 05, 2018 13:02 ((expanding market, new regions))

VANCOUVER (August 15, 2018) — CatalX, a new Canadian digital asset trading platform, a partnership of digital tokens in Canada.

https://support.bittrex.com/hc/en-us/articles/360013180212-CatalX-to-Launch-a-Revolutionary-Digital-Asset-Platform-for-Canada-Platform-will-be-Powered-by-Bittrex-Technology ((expanding market, new regions))

LONDON (July 5, 2018)** — Bittrex, the premier US-based blockchain trading platform, and invest.com, a leading fintech brand, announced a partnership today to open a digital trading platform, starting with customers in the European Union. The new trading platform will be launched under the invest.com brand name. ((expanding market, new regions))

Allowing for fiat deposite/withdraw

https://support.bittrex.com/hc/en-us/articles/360001382223-Bittrex-Trading-101-Trade-with-U-S-Dollars-Fiat-

My analysis:
Bittrex is lately expanding into new regions probably in an attempt to grab market shares in new regions. Europe is one of the expanding regions where Bittrex expands with invest.com and Bittrexmalta. They also want to broaden the international list with new innovative coin/tokens. With Bittrex Malta the company opens up for international affilates to trade the new accepted tokens (according to local laws). Bittrex is making good strategic moves reaching new regions, allowing new tokens and fiat deposite/withdraws, these moves are sets them up for being a major important player in the regulated markets of US/EU/Latin America/Canada

Please forgive me for this long comment, it kind of makes me a little happy when getting opportunity to make some analysis and strategic thinking.


#5

Not at all, I think the analysis is both interesting and useful. Creating separate businesses in multiple jurisdictions should protect them from securities regulators in countries famous for overreach.

Looking into this a little more I found this post which provides more info about the process. Not sure if there is a requirement for the project to be live as they state:

“…if your team manages an existing blockchain project, your project can be listed in weeks instead of months, and if your team is getting ready for the initial launch of a completely new project, your token could be listed as soon as the blockchain goes live.”

The listing form itself is quite similar to the paperwork Bittrex US asked us to complete prior to delisting us. Questions that can become difficult are:

  • Do you have a US legal memo analyzing your token against US securities regulations?
  • Do you have a legal opinion letter from a Maltese law firm confirming that the token is a Virtual Financial Asset (VFA) and not a financial instrument?

Anyway, I’ll look into this further probably submit a listing request, the worst thing they can say is no. Thanks again for your help/analysis.


#6

That sounds like a good approach, no matter the outcome it is a new opportunity and seems to be interesting enough to give it a try.

When reading the application form I understand it can be quite tricky, some of the questions seems like they could have very different answers.

For example the one you mentioned I think they mean as soon as the project has a blockchain running then token can be listed, for MAID the current OMNI-asset. But I see your point and there where many tricky questions that got my thinking how could I explain to them that there is a new thing called datachains. :slight_smile:

“…if your team manages an existing blockchain project, your project can be listed in weeks instead of months, and if your team is getting ready for the initial launch of a completely new project, your token could be listed as soon as the blockchain goes live.”

Please take some time to fill out the form and if it is possible to get some guidence from them on certain questions try to get it, from what I’ve read exchanges seems hard to reach even for business to business communication.

Some part of the listing form could be the same as for Bittrex standard application form and as you mentioned they seems similar but the US regulary question maybe not be necessary in this case as the blog mentions only that:
Once we receive the Malta legal opinion, and the compliance review process is complete, the token becomes eligible to be listed on the Bittrex International platform.

The Malta compliance VFA license seems like the minimum and only requirement for listing. I tried to skim through the 60 pages of the The Malta Virtual Financial Assets Act, don’t know if I got any wiser, the license is no walk in the park and might take some weeks to digest and fully understand.
http://justiceservices.gov.mt/DownloadDocument.aspx?app=lp&itemid=29079&l=1

They had some interesting thing on what a whitepaper should include for compliance on page 54 and onwards.
Did not find anything that resembled to the US securities regulation but there was many references to EU documents which I did not read.
Malta seems, from what I know, respected for their casino licenses, found some information that a casino license cost about 50k annualy to maintain. I would not surprise me if a VFA license cost 50-150k euro for application/maintanence. Maybe a license could have further benefit than just applying to BittrexMalta, maybe access to EU/Canada/Latin America, listed on exchanges with fiat deposite/withdraws and so on.

Besides the license the only problem I can think of right now is if the Safecoin trademark issue will have an impact and how/if it should be mentioned in applications or if don’t matter.
Did just found some interesting text in below, what defines different assets.
[Frequently Asked Questions on the Virtual Financial Assets Framework] (FAQ-2.10 page 11) FAQ-2.10(https://www.mfsa.com.mt/pages/readfile.aspx?f=/files/LegislationRegulation/regulation/VF%20Framework/20180831_VFARFAQs_v1.00.pdf)

https://www.mfsa.com.mt/pages/viewcontent.aspx?id=674
https://mfsa.com.mt/pages/viewcontent.aspx?id=680


#7

Thanks again for all the info, we’ll see how we get on.


#8

Great to hear, wishing you the best in the djungle out there.

Also another reason worth mentioning to be listed on a EU exchange is that it could hedge against the SEC regulatory risk that Poloniex is constant facing.


#9

Yes I agree, being listed in multiple jurisdictions absolutely makes sense, and ideally listing in countries that have provided legal clarity gives exchange owners, users and projects a bit of comfort.