DX Exchange denies fraud allegations

The newly opened tokenized stock exchange DX from Estonia has denied any wrongdoing after being accused of fraud, association with fraudulent companies and faking its status as an EU approved company. DX Exchange denies direct ties with the fraudulent Israeli company SpotOption, and states is registered properly by law.

SpotOption was an Israeli company convicted for fraud and its banned in Israel. MPS Marketplace Technologies Ltd from Cyprus as taken over the trading license from SpotOption, and DX Exchange is now working together with MPS.

“In our Israeli branch we have hired some former SpotOption employees, but also hired many more from the banking industry and online industry in all our business divisions. We hire people, we don’t hire companies!” — a DX representative replied on Reddit.

DX Exchange has investigated into MPS Marketplace Technologies themselves, and found that the company complies with all regulations. That’s why DX Exchange is working with MPS. The Cyprus-based partner of the exchange stores all the stocks and tokenizes them on the blockchain for trading on the exchange that’s run by DX.

There’s more criticism towards DX Exchange in regards to their European trading license. The company is registered in Estonia and therefore needs to register into the MTR register, which is somewhat comparable with the Chamber of Commerce. This is not very special, and it provides details of the lawyer (Rauno Kuber) who took care of the company registration.

DX Exchange is registered as part of two operations: a financial wallet and the financial exchange. This company registration follows the rules of the European Union, and they are approved by the Estonian Financial Intelligence Unit. This means that DX Exchange, or actually the two companies it’s registered as, is a financial institute.

What does the European Union request from trading platforms? KYC and AML compliance! All customers need to be known to prevent money laundering. Because Estonia is a member of the EU, the registration of the DX Exchange and the supervision from the Estonian Financial Intelligence Unit is all good.

DX Exchange launched earlier this week. It’s an unique exchange because it allows investors to buy tokenized stocks into major tech companies. That means that investors can use their bitcoins and ethereum to invest in companies like Netflix, Tesla and Amazon.


Originally published at NEDEROB.