Mark Karpeles is Back with a New Crypto Exchange: EllipX
Mark Karpeles, the former CEO of the infamous Mt. Gox exchange, is back in the crypto scene with a new venture. He is launching a new crypto trading platform called EllipX in September. EllipX will initially target European users but plans to expand globally.
Karpeles aims to restore trust in the crypto space with EllipX, prioritizing compliance and transparency. The exchange will be fully compliant with the European Union’s Markets in Crypto-Assets Regulation (MiCA).
EllipX: A New Beginning for Karpeles?
Karpeles believes that technological advancements now enable more secure storage of cryptocurrencies. He acknowledges the challenges he faced after the Mt. Gox collapse, including death threats, but feels that attitudes towards him have softened over time. He expressed surprise at the warm reception he has received from the crypto community lately.
EllipX Offering Discounts to Former Mt. Gox Users
In an attempt to reconcile with former Mt. Gox users who lost assets in the 2014 hack, EllipX will offer them at least a 50% discount on trading fees. This discount is tied to non-fungible tokens (NFTs) that Karpeles previously issued as a gesture of goodwill to former Mt. Gox customers. However, only a few hundred of the million affected users have claimed the NFTs.
MiCA Compliance in Focus for Crypto Exchanges in Europe
Karpeles’s move to launch an exchange in Europe comes as the European Securities and Markets Authority (ESMA) has expressed concerns about non-EU firms offering crypto-asset services within the EU without fully complying with MiCA. ESMA has published a Final Report under the MiCA framework, outlining eight draft technical standards to improve transparency and clarity for both retail investors and crypto-asset service providers (CASPs). These standards address areas like sustainability indicators, business continuity plans for CASPs, trade transparency, order book formats, record-keeping protocols, and the readability of white papers.
While the future of EllipX remains uncertain, it’s an interesting development in the crypto landscape. It will be interesting to see how Karpeles’s new venture will fare and whether he can regain the trust of the crypto community.
