Launching a crypto exchange is a big deal, and you need more than just business experience and the right tech to get it right.
Preparation is key if you want your launch to run as smoothly as possible, and that means having a clear understanding of the regulatory environment, what’s required from you in terms of security, and customers’ expectations for their experience using your platform. Here, we’re outlining the four questions you should start by asking before you move forward with your launch.
Do You Have the Right Licenses?
The crypto regulations that apply to your exchange will depend on where you operate. Some regions require more extensive licensing and oversight than others, so do your research before you even begin the first stage of launching your business..
A good place to start is by deciding which jurisdictions you’ll serve, then finding out what licenses those countries or regions require. For peace of mind, you may want to work with a legal team that has experience in crypto compliance. Don’t just assume you can launch globally without meeting specific legal standards in each location—the last thing you want is to end up on the wrong side of the law.
What Software Will You Need?
You’ll usually need multiple software components to run a successful crypto exchange, including:
- An order matching engine (for the execution of trades)
- An admin panel
- Liquidity
- User interface
- Cryptocurrency wallets
Having the right software in place is essential to the success of your crypto exchange from the get-go. You can learn more about these components in DevExperts’ how to start a crypto exchange guide, written by the team’s own financial software developers.
How will you Protect User Funds?
It goes without saying that security should be your number one priority when you’re setting up your crypto exchange. Not only will you lose the trust of your customers by failing to protect their data; you’ll also put your company at risk of major legal risks.
So, before you launch, ask yourself how you’ll handle custody of assets, both hot and cold storage. Make sure you use multi-signature wallets, and set up strict protocols for internal access, so data is as secure as possible. It only takes a single vulnerability to lead to a breach, so the smart move is to build security into your infrastructure from day one.
How Will You Handle Support and Disputes?
Finally, offering fast, helpful support is another element that’s key to your success as a crypto exchange, especially as you’re building your reputation in your company’s early days.
Make a detailed plan of how you’ll handle user complaints and disputes—for instance, with live chat, email, a helpdesk system, or even phone calls. If you’re hiring trained staff to help (which we recommend), set up an onboarding process that sets your expectations upfront. If you do use automated exchanges, keep in mind that they’ll still need human support when something goes wrong.