Coinbase went public with a market value of nearly 100 billion yuan. Mainstream trading platforms accelerated the process of global compliance

Just before Coinbase went public, the SEC published its Token Safe Harbor Proposal 2.0, which provides a three-year grace period for blockchain projects to be exempt from the Securities Act if conditions are met.

"Compliance" has long been a commonplace topic in the digital asset industry, but it is often mentioned because compliance is not trivial. Compared with other industries, the digital asset industry is an industry with new blood flowing.

Every step of the digital asset industry's progress in compliance has a high reference value for the latecomers.

The importance of compliance, of course, is something the industry has learned many times through blood and tears. Trading platforms are plagued by compliance. The move comes after US authorities investigated and charged BitMEX, the world's largest digital asset derivatives trading platform. As a result, several co-founders have posted huge bail to US authorities to seek a settlement.

The trading platform that handled the compliance level properly also enjoyed positive feedback from the industry. Coinbase, which was previously regarded as the most compliant trading platform, already landed on Nasdaq on April 14. Its stock price rose from $250 to $328.28 at the opening of its listing, and peaked as high as $429 during the session. With a market capitalization of $64.5 billion. That means Coinbase's market capitalization is larger than that of the Nasdaq exchange and equal to that of Intercontinental Exchange (ICE).

A decade ago, digital assets were in their infancy; Five years ago, anyone could issue digital assets, the industry was growing like wildfire, and the industry was worth just $100 billion. Today, the market capitalization of the industry has exceeded trillions of dollars, laws and regulations are being refined in niche areas, and trading platforms have grown up in an environment that is no longer the era of brutal competition.

The digital asset industry needs compliance

New industries typically go through a brutal growth phase in their early stages of development, and this is especially true of digital assets that were initially used on the dark web. There are, of course, a few exceptions. Coinbase has been committed to compliance since its inception, operating within the confines of law and policy.

Now that Coinbase has gone public, there are only a few remaining trading platforms that Coinbase created around the same time.

Coinbase has licenses for transfer transactions in all 50 states, as well as New York's BitLicense for digital assets.

Horizontally, in addition to Coinbase, other major global trading platforms also started to implement compliance operation strategy very early. MXC Matcha was founded in April 2018, but received an MTR licence from Estonia's Ministry of Finance the following year, followed by an MSB licence under the guidance of the US regulator FinCEN in 2020. In the same year, MXC Matcha also received a financial services licence from Australian financial regulator Austrac and a Swiss VQF compliance licence. MXC Matcha is now one of the most licensed trading platforms in the world to operate in compliance.  

In addition to licenses, MXC Matcha also cooperates with traditional payment companies around the world to actively expand legal tender compliance channels and further broaden the use scenarios of digital assets. In 2020, MXC Matcha joined Blockchain Turkey Platform (BCTR), a Turkish Blockchain Blockchain, and entered into strategic partnerships with Southeast Asian payment processing Platform Baxa, European compliance payment company Simplex, and Vietnamese compliance Platform BVNEX.

Whether it's & have spent Trading platforms like Coinbase, or MXC Matcha, whose strategy of focusing on compliance won't lead to significant financial growth in the short term, can quickly integrate into the mainstream financial sector with compliance.

The same example also happened to Grayscale Trust. Due to compliance, its trusts, such as Bitcoin trust products, enjoyed market premium for a long time and brought huge management fees to Grayscale Trust.

How does MXC Matcha carry out its global compliance operation strategy?

In the field of digital asset trading platform, MXC Matcha is an early platform with global compliance operation.

At the beginning of its establishment, MXC matcha has established deep cooperation with many security companies, such as Know-Chuangyu, Woo Technology, Zhanyu Technology and Beijing Lian 'an. MXC matcha ranks third globally in the "Cyber Security Assessment" conducted by global security rating agency CER.

Compliance also brings positive feedback to MXC matcha users and transactions. To the latest MXC matcha. M-Day activity, for example, in its project lottery, participating users covered 21 countries and regions, including South Korea, Japan, Turkey, Vietnam and the Philippines. The number of lottery users increased by 4.46 times and the number of lottery entries by 7.2 times compared with the same period last year.

In the first quarter of 2021, MXC matcha customers received 9,043 one-to-one receptions and 1,879,280 messages individually, with user satisfaction of 97.89%. The initial response time of the user service was 20 seconds, and the average response time was 30 seconds.

The active community and compliance process give MXC matcha more momentum and customer retention, but getting more users involved requires more gameplay. Coinbase, for example, attracted users not only to compliance, but also to the wealth effect.

MXC matcha is the early "diggers" of the Poka and Defi ecological projects. From mid-2019 to the present, MXC matcha has been released globally, including   DOT, KSM, EDG, PCX, Ring  And more than 10 Boca Eco projects, as well as   Comp, UNI, Sushi, Dego, ANC, YFI and other dozens of quality DEFI projects.

According to statistics, the number of MXC matcha concept assets, such as Poka, DEFI, NFT, Storage, Grayscale, Layer2 and Rebase, was nearly one hundred. After being dug by MXC matcha, these projects were successively launched on the "Big Three" and Coinbase, bringing the wealth effect from several times to one hundred times for users.

The trading platform's next tussle will be in the compliance area

The success of Coinbase's IPO has opened the market's imagination with the announcement that Kraken, Europe's largest digital asset trading platform, may go public in 2021. Binance has hired Maxwell Baucus, a former U.S. senator and ambassador to China, as a policy adviser and government liaison to pave the way for compliance.

MXC Matcha has been in contact with regulatory agencies of regional governments since 2019, and has been granted compliance licenses in Estonia, the United States, Australia, Canada and Switzerland.

All signs indicate that the next round of competition for trading platforms may be in the "compliance" field. Much of Coinbase's high value comes from "compliance," the next frontier in the trading platform's valuation imagination.

When the mainstream financial sector began to embrace digital assets, that was the day the wild growth of the digital asset sector stopped. Just before the Coinbase listed less than 10 hours, the securities and exchange commission announced the scrip safety proposal is 2.0 ", is one of the most important content of the proposal, block chain project within the grace period for 3 years, achieve recognition degree of decentralization and mature degree, can maintain the tokens for the securities, not be bound by the securities law of the people.

If the proposal is passed, it could be followed by other countries regulating digital assets.

Coinbase had 2.8 million transaction users in the fourth quarter of 2020 and increased its number by 117.85% to 6.1 million in the first quarter of 2021, according to the company's prospectus. Obviously, the first choice for ordinary users to participate in digital asset trading is the compliance trading platform. Volume at BitMEX, which is under investigation by the U.S. Commodity Futures Trading Commission for compliance issues, fell off a cliff.

In the long run, compliance is the future. Only by pursuing global compliance development and carrying out local compliance operation strategies can we, just like securities, win the favor of more ordinary investors and allow more users to participate in digital asset trading.

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