New exchange highlights security, ‘Danish values’

Ronny Boesing wants his customers to feel as though hisexchange were actually monitored by a financial watchdog.

Boesing’s cryptocurrency exchange, CCEDK,registered in Denmark and currently in beta, puts an emphasis on security andtransparency.

“Ourstrongest selling point will be that clients will know where we are, that thejurisdiction is Danish and that there’s complete transparency,” Boesing toldBusinessweek. “We link to our lawyer on our website in case anyone feels theyneed one.”

Exchange safety

With the very public failings of Mt. Gox and Neo & Beethis spring, an emphasis on the security of customer deposits has emerged.CCEDK takes a multifaceted approach to guaranteeing its security.

First, 30% of all revenue will be set aside as a bufferagainst theft or criminal loss, Boesing said.

“The onlyway people will be able to lose money on our exchange is as a result of aninvestment loss,” he said in the Businessweek piece. “They’re protected fromcriminal acts.”

Second, CCEDK appears willing to embrace whateverregulations emerge in Denmark.

“Our aim at CCEDK is to follow all necessary rules and regulationswithin the Danish judicial system and to closely monitor AML(anti-money-laundering),” the site reads.

That the company is registered in Denmark is a point offocus. Boesing said this fact lets customers know who is running the exchange,and from where. This also allows the team to import “Danish values like integrity, honesty,transparency, and trust.”

We reached out to Boesing to understand how exactly this works.

Cointelegraph: Whatdoes it mean, in practice, for the buyer and seller to "meet"[wording from CCEDK’s About page] to conduct a transaction? Is that actuallyin-person?

Ronny Boesing:The transactions are made peer-to-peer, order-to-order, meaning again thatbuyer and seller set the value of each transaction from order to order.

CT: I would love tohear more about what inspired the model for your exchange's security.Particularly, why tie that to Danish jurisdiction and the prospects of futureregulation there? Does that make a stronger statement than, say, cryptographicproof of reserves?

RB: I believeboth statements would make strong points, as Denmark is now one of the fewcountries with little to no legal restrictions in regards to digital/virtualcurrencies, and your wording “cryptographic proof of reserves” sounds good as well,as long as “reserve fund” and “proof of reserves” is considered as having thesame meaning. I guess it actually does, but we used the “reserve fund” as a way of describing it.

Bitcoinexaminer, who did a follow-up, put it quite nicely:

Besides, the exchangewill keep 30 percent of its revenue aside in order to create a fund that canprotect its clients from crime-related losses. This means that although thesecurity measures used by the platform might be fallible, at least there willexist a buffer ready to shield the clients in case of capital loss due to somesort of criminal activity.