APKA Launches BTC, USDT, ETHER, Sovereign/MASALA BOND, UST, GILT, MTN Trade Advisory
TECHNICAL DUE DILIGENCE FOR ASSET BACKED CRYPTO EXCHANGE
General Information
Regulatory Compliance
Regulatory Compliance
- Company Background: Details on founders, history, legal structure and operational jurisdictions.
- Business Model: How the exchange generates revenue, fee structures and any other income sources.
Regulatory Compliance
Regulatory Compliance
Regulatory Compliance
- Licenses and Certifications: What regulatory approvals does the exchange hold? (e.g., MSB, FinCEN registration, etc.)
- Compliance Programs: Details on AML (Anti-Money Laundering), KYC (Know Your Customer) and CFT (Combating the Financing of Terrorism) policies.
Security Measures
Regulatory Compliance
Security Measures
- Custody Solutions: How are assets stored? Are cold wallets used? What's the insurance policy on assets?
- Cybersecurity: Protocols for protecting user data and funds, including audits and penetration testing results.
Technology
Operational Due Diligence
Security Measures
- Platform Architecture: Overview of the tech stack, scalability and uptime statistics.
- Smart Contract Audits: If applicable, audit reports for smart contracts handling assets.
Asset Management
Operational Due Diligence
Operational Due Diligence
- Asset Verification: How is the backing of assets verified? Regular audits or proofs of reserve?
- Asset Types: What types of assets back the cryptocurrency? (e.g., real estate, commodities, fiat).
Operational Due Diligence
Operational Due Diligence
Operational Due Diligence
- Trading Engine: Details on the trading engine's capacity, matching algorithms and latency.
- Liquidity: Sources of liquidity, market making arrangements, or any partnerships for liquidity provision.
Financial Health
- Financial Statements: Access to audited financials, including profit and loss, balance sheets, and cash flow statements.
- Funding: Information on past funding rounds, current valuation, and future funding needs.
Legal and Governance
- Legal Structure: Details on corporate governance, board of directors and decision-making processes.
- Dispute Resolution: Mechanisms for resolving disputes between users or with the exchange.
Market and Competition
- Competitive Analysis: Positioning against other asset-backed exchanges or traditional exchanges.
- User Base: Size, growth rate, and demographic information of the user base.
Risk Management
Customer Experience
- Risk Assessment: Identification of operational, legal, financial and technological risks.
- Insurance: Coverage details for operational risks theft, or hacks.
Customer Experience
Customer Experience
Customer Experience
- Support: Quality of customer service, dispute resolution times and user feedback mechanisms.
- User Interface: Ease of use, accessibility and features like mobile app availability.
Future Roadmap
Customer Experience
Customer Experience
- Development Plans: Upcoming features, partnerships, or expansions.
- Innovation: How the exchange plans to stay ahead in technology or market trends.
Environment Social Governance
Exit Strategy and Long Term Vision
Exit Strategy and Long Term Vision
- Sustainability: Practices regarding energy use, carbon footprint or other environmental considerations.
- Social Impact: Initiatives or impacts on community or broader societal issues.
Exit Strategy and Long Term Vision
Exit Strategy and Long Term Vision
Exit Strategy and Long Term Vision
- Vision: Long-term goals beyond immediate market conditions.
- Exit Options: Potential strategies for investors or users in case of market downturns or company exits.