“The key element in the exchange business is trust. By securing technology and transparency, GOPAX wants to create exchange standards that are perceived trustworthy in the domestic cryptocurrency market,” expressed GOPAX CEO Lee Junhaeng in an interview with Dailytoken on August 22nd while attending “Blockfesta 2018.”
GOPAX is a cryptocurrency exchange launched by Streami, a blockchain company, in November 2017. It attracted significant attention by adhering to its principle “Zero Listing Fee. Review Criteria: Technology,” amidst a market of troubled crypto-exchanges, many of which have been plagued by a never-ending list of problems such as hacking, insider-trading or pump-and-dump schemes.
“Projects that raise the most amount of money through ICOs are not always necessarily good projects,” he said, emphasizing “What’s more important is technology.”
GOPAX does not charge any listing fees. Its major source of income comes from transaction fees that incur when customers trade cryptocurrencies. When asked if such transaction fees suffice for its operation Lee said, “It’s not ample, but it’s not to the extent that it affects company operation.”
To separate the wheat from the chaff, GOPAX discloses its listing review criteria in a transparent manner. The review committee comprises six experts from different fields, including blockchain technology, cryptocurrency investment and marketing. The decision to list a token is made by the committee based on a thorough review of the following criteria:
- Code Analysis
- Legitimacy – Not a scam
- White Paper Analysis
- Verification of team members and partners
- Tracking progress of the project
In addition, GOPAX set strict internal rules on the operation of listing. For instance, placing ‘buy order’ is prohibited in the first five minutes of a new token’s listing, while GOPAX employees cannot participate in token airdrops.
“Lack of transparency is the top complaint towards exchanges among domestic investors,” Lee said, claiming “Exchanges should come up with their own operating rules and disclose them in a transparent manner in order to alleviate customer anxiety.”
GOPAX focused on attaining system security to earn trust from its customers. It is the only exchange that acquired the Information Security Management System (ISMS) certification from the Korea Internet and Security Agency (KISA). It also achieved the ISO/IEC 27001 security certification last month.
This illustrates that GOPAX is an eligible exchange to a certain extent when it comes to the issue of “security,” which is an endemic problem for crypto-exchanges as a whole. Yet, banks have temporarily suspended issuing the real-name authenticated virtual accounts to exchanges like GOPAX.
“We believe that GOPAX is sufficiently qualified compared to other exchanges in terms of security, but banks’ decision on issuing real-name authenticated virtual accounts does not seem to be an easy one. If the government provides an operational guideline on crypto-exchanges, a more balanced and fair market will be formed,” said Lee. He also signaled the exchange’s commitments to strive for virtual accounts going forward.
GOPAX is also active in attracting foreign investment. On June 1st, it launched “gopax.com,” a cryptocurrency exchange dedicated to its foreign subscribers. To fully distinguish between users residing home and abroad, the website itself cannot be accessed from a Korean server. Lee said that this is “to comply with government guidelines.”
Although gopax.com strictly prohibits domestic investors from registering, the exchange clearly has its roots in Korea. It has taken a very different route, whereas other blockchain companies seek to avoid local government regulations by starting up their businesses in Switzerland or Hong Kong, both well-known crypto valleys.
“GOPAX decided to take a direct approach in order to abide by the domestic regulations. We want to be known as a company that runs its business legitimately by paying taxes in Korea.”
On a final note, Lee expressed the ultimate goal of GOPAX, which is to create exchange standards, serving as a best practice in the blockchain market. “GOPAX feels a sense of responsibility for being an exchange that abides by the local regulations. We hope to remain as a trustworthy exchange among investors for a long time,” commented Lee.
Translated by Cha Soo-jin