Archax has leveraged the proven expertise of a global fund administrator for a new institutional crypto exchange.
Archax has partnered with Custom House for Know Your Customer (KYC) and Anti Money Laundering (AML) checks on firms and professional investors who wish to join and trade on the Archax exchange.
According to Archax, these checks will be performed on all entities wishing to participate in Archax’s forthcoming Security Token Offering (STO).
Most existing crypto trading venues have primarily targeted the retail space and they lack the systems, controls, processes, and transparency that institutions look for, Archax revealed.
Additionally, the Archax exchange has been designed with these institutions in mind and will legitimise and evolve the new digital asset marketplace for them.
It will do this by adopting best practice regulatory, compliance, and operational principles.
All exchange participants are key to this and will have to go through a comprehensive set of KYC and AML checks that Custom House is known for.
Graham Rodford, CEO and a founder of Archax, commented: “Coming from the hedge fund industry, we realise how important it is for institutions and their clients to know exactly who their trading counterparties are, as well as exactly where funds have come from.”
“Regulations are very strict in this area and the existing crypto space simply doesn’t operate in the way that these firms both need and expect.”
David Barry, COO of Custom House, said: “Performing KYC and AML checks, as well as many other fund administration, compliance and regulatory tasks, is the lifeblood of what we do for our clients operating in traditional markets all over the world.”
“We have been looking at ways to broaden our services, and the crypto space is of interest to us as it presents a unique and exciting opportunity.”
He continued: “Working with Archax, who know the crypto and traditional investment spaces well, and understand how institutions need to operate, gives us precisely the route and partner we need to expand into this new market.”
“As the tokenisation and fractional ownership of traditional assets become more commonplace, which we fully anticipate it will, Archax in partnership with Custom House will be well placed to provide a suitable environment for institutions to both list and trade these new digital assets, as well as key existing crypto currencies/tokens too.”
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