Regulators

$0X's infrastructure creates an environment more compliant than any traditional offering can achieve

Onchain KYC and AML

$0X aims to achieve full regulatory compliance, unlike many decentralized exchanges (DEXs) that currently do not meet regulatory requirements. DEXs face challenges implementing Know Your Customer (KYC) and Anti-Money Laundering (AML) measures due to their decentralized and pseudonymous nature. To address this, $0X plans to implement a "tierer" role for independent KYC processing and financial knowledge assessment. Wallet addresses will be whitelisted for approved tokens, preventing illicit use. A blacklist will also be incorporated to track wallets associated with criminal activities. Additionally, $0X will follow a rigorous process for creating new tokens and markets and may partner with reputable liquidity providers and market makers who undergo thorough checks for appropriate conduct.

Mitigating Market Manipulation

Centralized exchanges have faced criticism for potential trading practices that may not align with users' best interests. The nature of centralized systems allows for information advantage and potential exploitation. In contrast, $0X's blockchain-based infrastructure provides transparency in trade activities, enabling the identification and action against malicious accounts engaged in market manipulation. By proactively monitoring and collaborating with third parties, $0X aims to create a fair and trustworthy trading platform while meeting regulatory expectations.

Commingling of funds

$0X's self-custody model distinguishes it from traditional financial systems and decentralized exchanges (DEXs). Users maintain control over their funds, eliminating the risk of misuse or commingling by $0X. This enhances user security and protection, even in the event of insolvency. The self-custody approach also reduces liquidity pool risks, ensuring users' funds remain securely held in their wallets. From a regulatory standpoint, this model aligns with objectives to enhance market integrity and safeguard customer funds, creating a more secure and resilient trading environment for users and regulators.

Configurable participation rules

$0X not only incorporates Know Your Customer (KYC) and Anti-Money Laundering (AML) checks to regulate user entry, but it also employs a methodology to introduce a diverse range of supplementary checks and requirements for accessing specific products. This is achieved through the implementation of a tiered functionality, wherein multiple tiers can be established and corresponding rules can be applied to determine which tiers are eligible to trade particular products. $0X adopts a forward-thinking approach by developing a fully configurable permissions system, which enables the platform to adapt and remain aligned with both present and future securities trading requirements.