Adam Cai on VirgoCX, Canada’s regulated crypto exchange

0:00I'm Ashlyn Addison from event chain for investmentpitch media and FinTech news network and today on blockchain interviews we have Adam Chi the CEO and founder of Virgo CX crypto currency exchange Adam thank you so much for taking the time to be on the show I'm excited for today thank you very much fluid times whoosh I'm very excited to learn a little bit about Virgo CX I know

0:25that you guys have a cryptocurrency exchange as well as an OTC desk could you start off by giving a little bit of background into what is your guys competitive advantage and what is the traction looking like right now sure no problem so Bravo CX currently is a register entity at the money so it's famous for the fing track and we are here to conduct change racing Toronto Canada Oh

0:48had a core database in Toronto so when we talk about competitive advantage actually is that the reason why we want to set up a a new cryptocurrency change after all the other option you have being established is we want to really provide to traders a place where they can find the training pairs to be very liquid so that they can get being and get out very easily with a very tight

1:12bid-ask spread and also in the meantime we want to provide traders a competitive trading fee schedule because currently Canadian landscape compared to the word is actually kind of expensive so we want to reduce that cost to make every trader it's affordable to betray the whole platform and also we realize it's very important to provide a very secure

1:39solutions for the traders so that's actually in the two forms one is on a field asset form which is in CED we do have very stable banking relationship that will provide our customers segregated bank accounts to store your assets and the bank is certainly a Schedule one bank so it's all insured and secondly it's very important also to have more to authorization and the hub code what is

2:05separated in order to make sure we don't have any key male risk such as we will never happen for things like could we get could do that the ex and cons assets croup two assets the top priority for us and want to make sure there will be no missing coins and there will be not rely upon any single person and what makes that like from day one and last but not least on in terms

2:28of them the OTC side we actually want to provide a cloud solution where they can't basically cause you know make a code anytime they want and they don't need to worry about you know the potential price to pitch because we always provides on one code and that can be locked when I save up on the confirmation and we do very very fast settlement that means a cubic happen

2:54same day no matter why they want to sell coin by coin they can receive the money with a zero biggest day and that the most will be T plus one and also we do not charge any fee it's zero trading fee everything is included in the enterprise we provide to them that's why our own TC services and the retail all had been growing pretty fast wow that's some great

3:16background Adam thank you and I like what you mentioned at the beginning having a lot of trading pairs with high liquidity so people can make trades with small spread and get what they need right away can you talk a little bit more about what are the current major trading pairs on Virgo CX and what are the volumes like and what else is worth looking at on the order book sure no

3:36problem so right now we have y el Emperor's in total compared to many trade currency trend ubers that's not a large number because we have been very careful on what's the the tokens were listing and whenever we'll it's a token want to make sure the liquidity is aware prepared so right now in terms of the CED pair which is really all antibiotics and being a feared crew cookbooks trench

3:59we have btc-e th b CH LTC the OS will recently listed us DT and yours one thing to really mentioned here is we are actually the first exchange in a word that has the USD key to see deeper under a telephone and also we are one of the first exchanges that provide us to see OTC a deep layer and we really want to make sure you know on the Canadian side

4:26a lot of uses we seeing is they still use CAE trait and for a lot of new years they don't have capital assets so we want to cut gifts and opportunities to use the CED to buy those high quality tokens at least those tokens have been a market for a few years and have been tested by market by a few years and we want to give them that solutions well then to

4:49trade and also I mentioned the we also want to become a word stable core training center so we also you know graduate add our more stable core pairs such as we right now we have the first euro dollar back stable client I guess the ad which is yours against the ad and that's also a word first that enable on the Canadian others to buy I basically to get exposures to your daughter

5:13mm-hm that's great to have those unique CIT trading pairs and I'd like to know a little bit more about the Canadian crypto currency exchange market right now as you are catering to explicitly Canadians is the Canadian market saturated and bike also by catering to Canadians are you limiting out the growth from America and other countries to grow as big as exchanges like bid

5:37stamp and Finance yeah I think that's a very critical question that I have asked myself multiple times before I see Canadian market in general sense it is smaller than the rest word because the total population of Canada is much smaller however according to a Bank of Canada's 2017 statistics there are about 1.8 million peoples in Canada who hold cryptos at least at certain point of

6:03time in history so I think from our studies some of our major pairs currently only had a few hundred solid users so I think it is do not saturated in a way that you know nobody actually controls a major chunk of the 1.8 million people and is actually still new people come into the crypto world every single day so I think on the Canadian side search lanes there will be more

6:30room to grow and also we have two as kind of industry player we have to make sure the solution will provide it is competitive not only from a Canadian perspective also on a global you know in either the fee side and also the liquid inside so that's why we are trying hard on this to be at least as good as the international standard and in terms of the global certain a Peugeot

6:57C is also paste closed attempt to that and Robo CX currently is already in a way of routing but with six global sites and it should be like being a matter of two months at that time we'll be able to attract over 150 countries users to be able to onboard with us wow that's very exciting to hear that expansion so congratulations to that I'm looking forward to seeing more on that now a

7:21little bit earlier you touched on the fact that forego CX is listing a bunch of different stable coins and there are lots of different stable coins that are coming out for different currencies in 2019 so far could you talk about your plans for growth in terms of adding more stable coins to Verger CX and also the importance of why you need stable coins

7:42for trading trading strategies or otherwise sure no problem I guess I would start with the rationale why I think stable coin will be able to attract such a fraction in the future in the past couple years we have seen that stable client mostly be used as a Hagin – right so when we didn't see as there is a potential job of the cryptocurrency price people would actually sell

8:09cryptocurrency to stable coin to avoid risks however there is a key question yet to be answered is is is actually USD back stable coin enough sufficient I think the answer is not because of the political potential chaos currently us the USD currency at itself is not stable so we need more different currency denominated stable coins in order to

8:36provide users different ways to hack your currency risks so that's one reason I think there will be more applications in a stable coins in the future and the second thing is really something we want to advocate is to build a fixed FX for exchange trading using the block in technology so right now people when they trade Kryptos they typically only trade basically on the price trench our

9:04price movements of the cryptocurrencies however we have not thought about a case where you can use a Bitcoin I use the other stable coin to potentially participates in FX movements of them after basically using that stable coin trading so that's those are the two reasons why we want to work with more different currency providers and certainly we're talking with a lot of

9:30sleep of coin projects our current focus is on a feedback stable one it's not about crypto back or as a back yet because of the regulatory into currency Canada we already have four stable points our platform right now and we're looking to add more definitely in a very near future potentially looking to add to make it around ten in the end of the year

9:55Wow well I'm looking forward to seeing how that plays out and one important factor for any trader on a crypto currency exchange is the security of the exchange I know you touched on that a little bit but also the the regulation behind it can you talk about how regulated is it for when users are signing up to the exchange and how safe are their coins when they're holding

10:18them on the exchange sure no problem so right now because we are a Canadian registered entity we can only take Canadian license so whoever lives in Canada can potentially register in accounts Alborosie X and I think regulate a revelation is quite important to be pretty honest with you because with the proper regulatory framework the come to exchange ecosystem I think is

10:47healthier so we can fight off basically to find off some of the bad muddies down long to be washing in a crypto currency exchange and also in the meantime we can rely on the regulatory guidance in order to work with some of the custodianship providers such as banks right and in the future could be insurance companies because we have all those laboratory firm working man

11:12and compliance kyc policies in places that encourage those traditional players to partner with us to have more face into this industry and on Bronco six in order to open accounts you obviously have to go through some of our well-designed qyc process and we actually have an automatic verification function available so basically after

11:39you fill out your KYT information you can just click on automatic verification and we were basically connecting information with so deposit provider and if you can pass that information sure there is no requirements for you to upload any other manual documents so actually that provides at least 50% of our units currently to be able to finish the KYC

12:02in a matter of five to ten minutes Wow that's very fast and now there's a trend that's been starting it's it's been around for a while but it hasn't really flourished yet about the fact that decentralized exchanges are starting to become popular what's your thought on a decentralized exchange versus centralized exchange the usability and how that may affect a Virgo CX in the

12:24future I personally I think a centralized exchange definitely has some some value and especially for the centrist exchange basically the users can control your own private keys right so in terms of the safety side and a control side it is arguably better than a centralized exchange and I think in the very near future all the major players will have

12:52certain strategic place into this field we have already seen – working on this and we have also seen a lot of other major crypto currency changes currently in developments of the centric strategy at current stage of Robo CX we pay very close attention to the fear payments fear processing and also liquidities so that's why we haven't really made our own steps into the centralized exchange

13:22yet however I do see in the next one or Trias once all our global side life I think this interaction well make more sense we need to have larger populations in order to make appropriate Aquila DS for this change because in the end of day safety is definitely very important but also liquidity is critical to if the users cannot trade or liquidate their

13:49position that tiny ones that I mean the the meaning of having exchange is compromised mm-hmm yeah and for your OTC users they're able to go to you directly and avoid the the order book that's on the Virgo CX exchange to transact whether they I believe it's thirty thousand or more is that right how how easy is it to facilitate that OTC trade and how can people learn more about that

14:17sure so for all current OTC desk we actually have a relationship with major the credit providers USU Canada so we are actually able to facilitate transactions sighs anything France 30kg ad or 50k USD up and we can really accommodate you know both small or large volumes and so basically wherever an OTC train say in order for example I have

14:46behind okay the coin already liquidate so they just need to basically call our OTC desk or send email to our teacher desk or even just using their instant communicated to such as whatsapp Skype we accommodate all these and we will be able to provide undercoat and of course we have to finish the KYC our morning first but after data is all down and we

15:10can provide in a code and as they are satisfied with the college then they can take a locker code and what's the coated locked there will be no price movements and we can do the settlement typically send a so and that's why right now we're really providing this benefits to the OTC trader is it only to worry about price lippisch so if you think the pickle price is going down today I wanna

15:35I really want to get my client boy right now it is a give us a call we lock the price for you you don't need to worry about price movements anymore and us your money either today or the latest to keep us one so that's why we have seen a lot of attractions coming out we can do those buy and sell we can we can we can really accommodate all the other size to a large number that's great and

16:00how can viewers learn more about the crypto currency exchange and the OTC desk online so they can search now you can search Robo DXM Google they can go to UWM over 60 and and I actually do encourage people to follow us on Twitter because we have a lot of campaigns going on such as we the one that we just announced that we want to give basically one encourage the US doctors in Canada

16:30as week is listed the u.s. versus CED pair so any for anybody who deposits us for even as low as one u.s. we working you $15 worth of us as a bonus deposit bonus and we actually have constant campaign and we give out you know ledger wallet we care about bitcoins we almost have campaigns every single week so we do encourage people to follow us and if

16:56you have any OTC demands which you have an OTC page on works I to now you can just contact at play and we will be able to help you great well I'll leave those links in the description box below thank you so much for your time Adam let's follow up in the near future thank you so much Reston appreciate I you