B2BX, found online at B2BX.pro, is a cryptocurrency exchange powered by B2Broker. Find out everything you need to know about this project today in our review.
What is B2BX?
B2BX is a cryptocurrency exchange that aims to be “the biggest cryptocurrency exchange in the world.”
The exchange promises to create an equal marketplace where all exchanges and brokers are united with the ability to trade crypto-assets.
Essentially, B2BX wants to give new brokers and exchanges a way to access liquidity. Today, it’s difficult for a new broker to launch online. Customers tend to choose a broker with higher liquidity over a broker with lower liquidity. B2BX aims to make it easier for customers to compete by working as an exchange aggregator, providing a pool of liquidity connecting the marketplace across multiple exchanges.
How Does B2BX Work?
Basically, B2BX is an aggregator of cryptocurrency liquidity for marginal trading, trading with physical delivery, and distribution of liquidity to brokerage companies.
The company’s goal is to create the first official B2B cryptocurrency exchange aggregator or marketplace, where they plan to connect “at least 5% of the market of forex/DMA and stock brokers, and give them the opportunity to provide their clients with the trading in cryptocurrencies”, explains the official website.
The company is focusing exclusively on institutional clients, which includes stock exchanges, cryptocurrency exchanges, forex brokers, cryptocurrency brokers and exchanges, and other professional market participants.
To accomplish these goals, B2BX will integrate with the most popular trading platforms available today, including MetaTrader 4, MetaTrader 5, PrimeXM Trader, FX Inside, C-Trader, and other platforms. B2BX will integrate with these platforms through gateways, bridges, and open APIs.
The key beneficiaries of the B2BX platform will be financial institutions and retail customers. B2B customers – the institutions – will be provided with a deeper cryptocurrency market due to the fact that multiple exchanges are on one platform. Customers, meanwhile, will be able to trade cryptocurrencies from any usual broker, stock exchange, and exchanger.
The B2BX aggregator will offer three core features:
Physical Delivery Exchange:
Trades will be carried out under the Japanese license JFSA (this is the Japanese law passed in April 2017 that outlined broad regulatory frameworks for cryptocurrencies). Under this regulatory system, Japanese companies can use Bitcoin and Ethereum for mutual settlements with each other. It also requires licenses to conduct cryptocurrency operations, and for exchanges to maintain reserve funds of at least $100,000.
Right now, B2BX is using a company with a Vanuatu license (VFSC) to aggregate and distribute liquidity. B2BX plans to allow customers worldwide to connect to their aggregator and access liquidity by signing up for various licenses, including CySEC (Cyprus) FCA (UK) and ASIC (Australia).
Institutional clients will be able to exchange cryptocurrencies for other cryptocurrencies under the jurisdiction of Singapore.
Who’s Behind B2BX?
B2BX’s team, according to the official website, “consists of 35 highly qualified specialists that are located in 3 different countries.”
Key members of the team include Founder and CEO Artur Azizov, COO Evgeniya Mykulyak, CTO Vlad Posivenko, and CFO Olga Tkachenko.
The company was founded in 2014, when they launched two products called White Label MT4/MT5 and Traders Room for brokers. The company developed the first full-fledged CRM system for brokers in partnership with Microsoft Ukraine in 2015, then added PAMM/MAM/Social Trading into their product lineup in 2016, expanding into Czech Republic, Russia, Ukraine, Uzbekistan, Cyprus, Bulgaria, and Malaysia.
The St Petersburg, Russia-based company launched B2BX in 2017.
What Problems Does B2BX Seek to Solve?
B2BX seeks to solve crucial problems in the cryptocurrency exchange industry, including all of the following:
No Market Regulation:
Banks and licensed brokers cannot fully operate with cryptocurrency until it’s legalized. That means most brokers and exchanges are operating in a legal grey area with limited regulatory framework. B2BX plans to solve that problem by conducting trades based on Japanese regulations under the JFSA license.
Lack of Liquidity:
New brokers struggle to offer good liquidity to customers. It’s a catch 22 situation. Brokers need more customers to provide better liquidity, but customers won’t trade on the platform until it provides better liquidity.
Integration with crypto-exchanges and other counterparties entails technical difficulties because each broker or exchange has its own systems and APL. Many of them have a WebSocket API and REST API, while some have their own protocols.
Long Compliance Process:
Even the top exchanges struggle to provide compliance to each and every customer. The process of verifying new customers can lead to week-long backups. B2BX plans to solve this problem by unifying all customers behind a single compliance standard.
B2BX is a cryptocurrency exchange aggregator that aims to solve some of the biggest problems facing the cryptocurrency world – including everything from low liquidity to long verification times. It’s a unique project led by a Russia-based team of experienced exchange broker technologists that have been active in the industry since 2014.