Riding the Bull Market: How BTX Exchange Mastered Regulation and Compliance for Strategic Growth

Market Background and Trends

Since last year, international geopolitical tensions have led to high prices for commodities such as precious metals and crude oil. The return on gold ETFs has exceeded the total return of U.S. Treasury bonds since the 1970s. Bitcoin performed exceptionally well at the beginning of this year, and on January 11, the Bitcoin spot ETF finally received approval from the U.S. Securities and Exchange Commission (SEC), marking a significant breakthrough.

These events indicate that, driven by risk-averse sentiment, governments are becoming increasingly open to policies regarding the crypto industry. On May 23, the U.S. SEC approved 11 Ethereum spot ETFs, further fueling this round of the crypto bull market.

Although the crypto industry advocates for decentralization, this bull market has been propelled by the dovish stance of the U.S. government. The year 2024, hailed as the inaugural year of AWM (AIGC, Web 3.0, Meta), is closely related to the crypto industry and Web 3.0, with significant market growth potential. According to market data, the number of global cryptocurrency users exceeded 500 million in 2023, a growth of 34%. The annual compound growth rate of cryptocurrencies is expected to reach 30.40% over the next five years.

The crypto industry, represented by Bitcoin, has built a financial trading market for a Web 3.0 world. Most leading crypto unicorn companies are capital, trading platforms, and blockchain solution providers investing in the crypto industry. Cryptocurrency exchanges are the core medium for these transactions.

Compliance and Regulatory Dynamics

Despite the shift in attitude of various governments towards Bitcoin ETFs becoming more dovish, regulatory efforts have not weakened. In June of last year, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance, resulting in a revenue decline of about 75% for its U.S. branch.

In contrast, Coinbase, listed on Nasdaq, has actively embraced regulation and benefited from this bull market. In the first quarter of fiscal year 2024, the company's revenue reached $1.64 billion, a year-on-year increase of 113%, achieving a net profit of $1.18 billion, marking its second consecutive profitable quarter.

This shows that despite fierce competition, the cryptocurrency industry is developing rapidly, and it is not too late to enter the market. Embracing regulation will be key to the development of cryptocurrency exchanges.

Advantages of Compliance

Recently, a trading platform licensed by the Palauan government has emerged—BTX Exchange. This institution has attracted widespread attention due to its advantages in compliance and technological innovation.

As the second global exchange to receive a cryptocurrency operating license from the Palauan government, BTX Exchange has solid legal and regulatory backing. This license not only proves BTX Exchange's professionalism and reliability but also lays a legal foundation for its global operations.

In addition, the support from the Palauan government for BTX Exchange goes beyond the issuance of the license, including strategic investments and policy support. A financial institution under the Palauan government made a strategic investment of up to $20 million in BTX Exchange during its Series A funding round. This not only provides financial support for BTX but also demonstrates the Palauan government's high recognition of its business model and future development.

BTX Exchange Platform Introduction

BTX Exchange is the world's first WEB 3.0 value bridging trading infrastructure based on the DePIN protocol. The platform offers a wide range of cryptocurrency trading services, focusing on personal digital sovereignty and data protection. Through a modular blockchain multi-chain integration network, it aims to address many issues in the traditional financial sector and the existing cryptocurrency industry.

BTX Exchange's services cover trading, contracts, leverage, and wealth management, dedicated to providing investors with a convenient and secure cryptocurrency trading and wealth management platform, enhancing the security, liquidity, and yield of users' crypto assets.

Security and Reserves

BTX Exchange relies on P2P protocol technology architecture to achieve a distributed ledger structure and differentiated storage of massive data, building a WEB 3.0 financial system. Currently, the platform's reserves have exceeded $100 million and have passed the rigorous review of the Palauan government's auditing agency, ensuring that the reserves genuinely exist and are fully available to support trading activities on the platform. This reserve not only demonstrates the platform's financial strength but also provides security for customers' crypto assets.

Conclusion

So, what unique technologies and services does this exchange offer? How does BTX Exchange ensure the security of user assets? The author will detail BTX Exchange's core technologies, operational model, and unique advantages in the cryptocurrency field in the next article. Stay tuned.