UMEX Enters Second Beta Phase

“UMEX serves traders through professional brokerage companies, just like conventional exchanges such as the London Stock Exchange or the New York Stock Exchange.”
— – Konstantin Timonin, Founder of UMEX

Umex is entering a competitive market. During the 18 months UMEX has been in development, the Bitcoin Industry has seen a raft of exchanges launch. The BNC index currently tracks data from 86 exchanges globally.

To distinguish UMEX from the competition, the development team identified potential weaknesses in current offerings, Konstantin Timonin, Founder of UMEX exchange explains “Most cryptocurrency exchanges use a hybrid business model, a stock exchange and an exchange service. These exchanges have a uniform money input and output channel and localized support services.”

To counter these issues, UMEX is focused on providing an international exchange, accessible through brokers, “a local broker can serve the clients in their native language and time zone, as well as integrate and offer technical solutions that enjoy popularity on the local market.” says Timonin

By incorporating this model, the exchange aims to drive competition, “Each broker will have access to the liquidity collected from all brokers. So new brokers representing their homeland jurisdiction will have a good opportunity to compete with international companies in a local market. We are interested in the development of competition among our brokers, this is a fundamental element of our approach. The more highly competitive brokers we have, the better.”

As UMEX is still in Beta testing, the exchange created 247online.trade their own homegrown broker. "We made a separate legal entity in order to demonstrate to the community how to participate with UMEX” explains Timonin, “we need to work out all elements of interaction with brokers. A homegrown broker allows us to make all the elements work smoothly together. We developed the entire infrastructure, starting from the broker website, with advanced security features and trading terminal, ending with backend solutions such as risk servers and reports. All this will allow us to provide flexible solutions for companies that want to become a broker on the UMEX exchange.”

There are five key elements of focus of the team at UMEX in their beta tests.

• Liberal Pricing for Brokers: Exchange commission fee is just 0.08%, to leave freedom and flexibility for the brokers’ commission. The end price for a customer solely depends on the broker and how they choose to operate with their prospective clients. Bitstamp, for an example offer a fee schedule of 0.5% for $500 and under to 0.2% for $150,000 and over.
• Exchange Regulation: Due to their transaction monitoring system and ban of cross trading, UMEX hope to keep clients of the exchange secure in that the services provided are stable and reliable. Their price setting is also protected against and sudden changes in the market.
• Technical support: The system developed by the UMEX specialists takes into consideration each individual broker’s needs. The system has the ability to work with a vast array of multiple clients’ requests at any time.
• Smart AML/KYC program: Although a controversial topic in this space, UMEX have made the choice to regulate their exchange. The AML/KYC policy of UMEX was developed based on FATF recommendation and US regulations as an MSB.
• Safety and Security: This is an important focus for any exchange in the development process. Lessons have been learned and applied since the unfortunate fall of Mt Gox, and the loss that Bitstamp faced in January 2015.

In order to contribute to the beta-testing of UMEX, clients need to register with 247online.trade. Participants in the second beta testing round receive 6 months of free trading.