Banking on ZBX
We catch up with Dave Pulis, CEO of ZBX, as he updates us on the company’s latest news and future plans
This time last year there were numerous crypto exchanges that have taken up the Malta financial service authority’s transitory period to announce the setting up of their businesses on the blockchain island. One year on we take the opportunity to speak to the CEO of ZBX, Dave Pulis. With physical offices on the island and others around the world, ZBX is definitely making headlines.
Let’s get straight to the hard questions. Is ZBX proceeding with the VFA exchange application in Malta?
Yes, we have been working hard behind the scenes on many aspects critical to the licence application and I’m happy to say ZBX is on track to submit its application for a Class 4 VFA Service Provider licence in Malta. Considering the huge effort to set up a corporate governance framework for our VFA license, we are using the experience and legal framework to also prepare an application to be regulated under MiFID II that will enable us to list security tokens in the future.
Why do you think that most exchanges will not be proceeding with their application in Malta?
The Maltese regulatory regime is very thorough. It’s much easier to set up shop in jurisdictions with low to no regulation, where you can buy a licence off the shelf. The exchange business can be costly, even when unregulated. Bearing in mind that the future of exchanges is more akin to digital banking, we owe it to our users to establish ZBX in the most stringent jurisdiction which ultimately protects their interests and their assets. Malta has set a high bar, meaning it is possible if not likely that in time Europe will adopt a similar regulatory regime and perhaps in the coming years the licence will be passportable throughout the EU. This is a huge competitive advantage.
We read that ZBX is going to be audited by one of the top 4 audit firms. Is this true? If yes, why go through such an ordeal when this is not a requirement?
We have talked to the large audit firms and determined that if we are to be considered on par with traditional stock exchanges like Nasdaq and the London Stock Exchange, then we have to provide the same level of transparency and disclosure that traders expect when investing their capital. It’s clear that the industry has been left wanting over the last few years and it’s clear that there is still a long way to go. The exchange industry must continue to challenge itself and continue to adapt. ZBX wants to tackle the big issues; we want to provide clarity and security, the type you can only get through laying it all bare and being tested by independent bodies, agents, and regulators.
Let’s talk innovation! We heard on the grapevine that ZBX is planning to offer some banking services to its users. Can you tell us more about this?
Banking is the biggest pain point in this industry. The news should come out by the time this magazine goes to print but we can disclose that ZBX has secured partnerships with UK, Swiss, Chinese, and North American banks. Verified clients of ZBX will be able to open a personal bank account offered through our banking partners and link their bank account to ZBX. This means cash deposits in and out will be uninhibited by current restrictive practices seen elsewhere. Clients will be able to order debit cards and also have access to other exciting products that we will soon release to the market. We ultimately see ourselves increasing our product offering to be a leading digital financial institution, irrespective of whether you are based in Shanghai, Brazil, or Germany for example. This will apply to both digital and traditional assets.
That is a big claim indeed for a company that is less than one year old. What are the expansion plans for ZBX to achieve such rapid growth?
Firstly we should thank our partners in Asia, the ZB group, for the assistance they provided. Going forward, we have hired the most talented marketers and product development experts that will form part of our core team helping to polish our existing product. We are currently revamping the website, backend, trading infrastructure/API and mobile Apps. Soon afterwards we plan to add the banking interface and other tools that will make the user experience that much better.
There are millions of crypto users that are unbanked due to the regulatory uncertainty burdening the industry. We will be offering users the ability to deposit and withdraw in multiple fiat currencies, hedge with bank-backed stablecoins and secure their assets in a regulated exchange that is trusted by reputable banks.
ZBX is much more than a crypto exchange. It is also your security token exchange, your cash machine, your liquidity provider, your business accelerator, your forex agent, a bridge between people, countries and continents as well as a bridge between the traditional economies of the past and the digital economies of the future. Virtually, anything is possible.
Read more articles like this in the digital edition of Block magazine.
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