CEO’s Message Regarding the Exchange Under Development
Dear Valued YGGDRASHers,
this is David Seo, a CEO of YGGDRASH.
First of all, I would like to express my sincere appreciation to all of you for showing great interest in the exchange under development, and I would like to share with you the up-to-date details.
1. The Transition from Korea to Global
Initially, the Team planned a cryptocurrency exchange which can handle KRW. However, due to the following reasons, the Team has decided to set up its base in Singapore to serve the global market.
1–1.The Regulatory Risk of Handling KRW
Recently, the Korean National Assembly proposed the revision of the Act on the Reporting and Utilization of Specific Financial Transaction Information (hereinafter referred to as the “Special Act”). The amendment stipulates that if an accident related to anti-money laundering occurs in a South Korea-based cryptocurrency exchange, the bank issuing the account to the exchange will be liable for it, not the exchange itself.
The creation of ‘Hive Account(Multi Accessible Account)’ for the use of KRW Deposits was also banned. Furthermore, when an exchange is seen using the Hive Account, the bank can confiscate the exchange’s account. Presently, only four exchanges can use the real-name virtual bank account system while other cryptocurrency exchange cannot. Thus, the use of a Hive Account was the only way to handle KRW, and now this seems implausible.
The Team contacted many banks dozens of times to find a clear solution for months, but could not resolve the issue to date.
1–2 Weakened Korean Crypto Market
In March 2018, the Korean Financial Authority announced the <Cryptocurrency Anti-Money Laundry Guideline> and expected to be legislated in the near future. Since the announcement of the guidelines, the hurdles of cryptocurrency exchange operations in South Korea have aggravated, and amongst the global exchanges, three South Korean exchanges once ranked in the global top 10 are now pushed back to the top 100.
2. New Business Model
For the time being, the exchange is not going to handle Fiat Currencies such as USD / KRW / JPY; however, the Team will utilize and implement a Stable Coin to provide various investment options that were not available with fiat currencies.
Furthermore, we have changed our benchmarking target from ‘FCoin+Binance’ to ‘Bitmex+FCoin’.
The exchange will be the world’s first “Right-Sharing Exchange” which will introduce new derivative products that can be alluring to many traders.
3. The Release Schedule
With the transition of the focus market from Korea to global, significant changes are being implemented to the business model of the exchange. The exchange is now free from the heavy regulation of South Korea, but it needs to compete with leading exchanges in the world.
The Team concluded a major upgrade in the core system is needed and the release schedule has to be postponed inevitably.
The Team and I would like to sincerely apologize for everyone who has been waiting for the exchange. We know by heart the weight of postponing the release date, and how it may disgruntle everyone who is waiting for the service. The final release date will be announced as soon as possible.
4. The Correlations between YEED and the Exchange
Setting YEED as the key currency for this exchange would be a nice scenario; however, it would take some time to actually implement this. Major exchanges are also struggling to invigorate non-BTC markets. The Team will try to find a way to realize this in the near future.
Although YGGDRASH and the exchange are fundamentally two separate entities, the Team will look for ways to raise the value of YEED and to build the YEED market without disrupting the system of the exchange.
Once again, the Team and I apologize for the change in the release schedule. I recognize your frustration and thus genuinely grateful to all YGGDRASHers for understanding.
The Team promises to present a remarkable cryptocurrency exchange unique from others across the globe.
David Seo, YGGDRASH CEO
Official YEED Smart Contract Address:
YGGDRASH Official channels
- Github: https://github.com/yggdrash
- Gitter: https://gitter.im/yggdrash/yggdrash
- Reddit: https://www.reddit.com/r/yggdrashYEED
- Youtube: https://www.youtube.com/yggdrash
- Telegram: https://t.me/YggdrashEng
- Twitter: https://twitter.com/YggdrashNews
- Facebook: https://www.facebook.com/yggdrash/
- Medium: https://medium.com/yggdrash