On the first Tuesday of September, our Executive Director Sergey Kovtunenko answered crypto-related questions of our current and potential customers. Take some time to have a look at them. Surely, there’s something you’ll find useful and interesting.
What are the main advantages of your platform?
I would point out the legal and transparent nature of transactions within the European jurisdiction with regulated crypto-finance activity. And what is practically important for you as a client — our several cryptocurrency exchanges and OTC-brokers, which allow our clients to exchange cryptocurrency at favourable price.
Do you have plans to add a crypto-fiat exchange app?
On crypto-fiat app — yes, we have plans to add it in 2019.
Where is the Zichain Trading Platform available?
The full version of the Platform for EUR-BTC exchange will be released in the 2nd half of September 2018. Additional fiat- and crypto-currencies will be added in Q4 2018. Additional fiat currencies — USD, GBP, CHF. Additional cryptocurrencies — ETH, LTC.
Mentioning limitations on jurisdictions — we would not execute transactions with the residents of USA, Canada and countries under restrictions of FATF (Financial Actions Task Force) — such as Iran, Pakistan, Syria and others. Our KYC/AML unit carefully checks clients against list of the EU-sanctioned countries — e.g. Afganistan — and sensitive industries.
Do you have plans to cooperate with big exchanges?
Indeed, we plan a partnership with first-tier and middle-size crypto-exchanges in a role of fiat-crypto gateway for their client base. And are considering other forms of cooperation as well.
And what is the current Zichange status?
To sum up — the EU license has been obtained, the whole setup of legal entity in accordance with regulation is completed, IT-part is in the final test stage. Business will be ready to start operations at the second half of September, 2018.
What is its main advantage of Theindex.Fund?
TheIndex.Fund is the simplest and smartest way to invest in the whole cryptocurrency market. You can invest in cryptocurrencies with lower risks and less efforts to keep your portfolio up-to-date.
Do you have plans to expand your products in future?
It’s a good question, as every good company is always looking forward to it. Strategically we are considering evolution of our crypto fiat broker by adding crypto-crypto exchange functionality and integration with an advanced trade terminal which exists in Alpha version now and is under further development.
Who is the target audience of the Zichange platform?
We focus on all the client segments: Private clients — retail and High- and Ultra-high net worth individuals; Institutional investors and financial infrastructure providers, such as Exchanges and Banks. For each clients/counterparties segment there is an appropriate proposal.
Do you plan to list your funds on traditional exchanges?
The possibility to list our index funds on traditional exchanges is under consideration at the moment. There are variety of jurisdictions and several different ways to get listed such as launching an ETF or ETN, so the final outcome will mostly depend on the future regulation and successful securitization of funds.
Is KYC required?
The jurisdiction of our operation requires KYC-check according to the procedure approved by the regulator procedure for both Private and Corporate client segments. Exception are entities with license in EU for financial services. And we have a dedicated KYC/AML officer, registered in database of regulator of country of registration.
Ok, I like the way you are thinking. Btw, what are the key features of the Zichange platform?
Taking into account the legal aspect, I would underline the features of fully transparent, legal, EU-regulated platform. And business-wise — partnership with large OTC desks allows to purchase Bitcoin in some cases with a discount to market for large transaction volumes.
Are you planning to obtain cryptofiat license?
Yes, sure — both licenses — for crypto-fiat conversion services and virtual currency wallet services — were obtained in Q1 2018.
Where was it obtained?
Our licenses were obtained in Estonia. This country was chosen for being one of the best EU countries for crypto-businesses for several reasons: 1) actively encourages the creation of a digital economy, 2) open attitude towards blockchain technologies and the cryptocurrency space, 3) one of the most competitive tax environment on the continent. The Estonian Income Tax Act does not set any peculiarities about crypto-businesses’ profits. In other words, crypto-businesses pay taxes in the same way ‘traditional’ businesses do. Value Added Tax does not apply to the transactions with cryptocurrency.
Can I use your products, your funds or BAMP for example, being a US resident?
Both actions — related to investment in Index Funds and Funds administration on BAMP related to income and related tax matters. For that reasons we would not provide those services for US residents.
What pairs will be added to Zichange?
On top of the supported BTC/EUR further we plan to add pairs with ETH, LTC against USD, GBP, CHF.
Do you like working at Zichain?
It goes without saying! Digital business knows no borders! And being a part of Professional team inspires me in daily work!