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Q&A: ZiChain’s Trading Infrastructure Manager Danil Yakovlev discusses ZiChange

Proactive sat down with ZiChain’s trading infrastructure manager, Danil Yakovlev, to discuss the firm’s ZiChange service, which allows investors to purchase cryptocurrency using cash

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The ZiChange platform allows users to buy and sell cryptocurrency with fiat money

1. Through which exchanges is cryptocurrency purchased through the ZiChange service?

DY: “ZiChange aggregates liquidity from all major cryptocurrency exchanges in order to provide retail clients with an opportunity to purchase or sell any coin or token – from popular ones like Bitcoin or more uncommon ones like Polymath or Kin. Deep liquidity also lets us offer block trading for institutional clients to minimize their costs by significantly reducing slippage while executing large orders.

“We have already set up business relationships with Kraken. As for Bitfinex and Bitstamp, ZiChange is in the final stage of onboarding. At the moment, Kraken is just enough to start operations with clients wishing to buy or sell not more than €100,000 worth of Bitcoin or Ethereum. In the coming months, we plan to extend the list of available exchanges with top-25 platforms by trading volume and number of listed coins, so that our clients can purchase any cryptocurrency in a fast, simple, and low-cost way.

“We are also establishing important partnerships with two cryptocurrency OTC brokers - the largest in EU and Asia respectively. These partnerships are essential for aggregating most of the liquidity in one place and becoming the single entry point to the cryptocurrency market for retail and institutional investors.”

2. Can the service be used only within the EU or also in other markets like the US?

DY: “Our exchange services are meant to be available for all markets, so you can trade Bitcoin practically from almost anywhere in the world. However, there are countries with specific and individual regulatory frameworks which are not covered by our EU license.

“We cannot temporarily onboard US residents due to tax and financial markets regulation, Chinese residents due to cryptocurrency trading being banned in the country, and residents of other countries – such as Vietnam or Bangladesh - where cryptocurrency is deemed illegal.”

3. How are user’s fiat currency and crypto holdings protected while in the system?

DY: “Fiat holdings of users are kept in the bank accounts of our company and can be transferred to exchanges or OTC brokers when the purchase transaction is initiated.

“Bank or payment service provider accounts are used for deposits and withdrawals of those holdings. The cryptocurrencies themselves are securely stored in institutional-grade vaults with cold wallets (crypto wallets that are disconnected from the internet).”

4. Will a user need their own cryptocurrency wallet before using the system or can they set one up in ZiChange itself?

DY: “Both options are possible. In addition to our institutional-grade vaults, we offer the opportunity to purchase and receive cryptocurrency directly to your wallet once an exchange transaction is settled.

“If you already have a cryptocurrency wallet, you will probably want to choose that option because it might be more familiar and simpler for you. However, some users come across problems with setting up wallets and implementing security, and therefore they can store and trade cryptocurrency within the ZiChange system from any device.”

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